We’re seeing a notable shift in the national housing market: 20.4% of active listings have now had price reductions. After eight months of increasing contract activity, homes going under contract slipped by less than 1% in mid-Q3. This change lines up with what I often observe in the field—higher borrowing costs, with the average 30-year fixed mortgage peaking around 6.7% and remaining elevated, are clearly putting pressure on buyers.
Even with softer demand, the market remains active. The national median list price dropped to $424,500, active listings rose by about 4%, and new listings ticked down slightly. Interestingly, fewer sellers are stepping away from the market, as delistings fell by around 13%. For buyers, this has meant more time to evaluate options and a bit more leverage in negotiations. At the same time, strategic pricing remains key for sellers who want to get deals across the finish line—a principle that’s especially true in the bank-owned and distressed property sector I focus on.
Looking ahead, the steadiness of mortgage rates could be just as important as their actual level. If rates hover near 6.7%, we may continue to see sellers reducing prices or deciding to pull homes from the market. As always, keeping a close eye on these shifts is essential for making informed decisions.
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