The Market Is Changing, But Every Market Is Different

The housing market is shifting this fall, but the national story does not look the same everywhere. Interest rates remain near their highs for the year, and demand is slowing in parts of the country. In August, 21 states had more sales than they did last year, while 29 states had fewer. Higher-priced homes are holding up better, while lower-priced homes are seeing more pressure from elevated mortgage rates. Inventory is also moving differently by region. Nationally, there are just over 1.1 million homes on the market, up 4.5% from last year, and forecast models now expect inventory to finish 2026 about 7% above 2025. But supply remains very tight in markets like Chicago and New York, while other regions are seeing more available homes. Price reductions are one of the clearest signals of softening demand. More than 42% of active listings have taken a price cut from the original list price, and price cuts are now higher than they were last year at this time. Home prices, however, remain very stable. The national median list price is about $448,000, essentially unchanged for four straight years. Some tight-supply markets are still appreciating, while other markets with more inventory are seeing prices below last year. Pending sales have softened too. August weekly pending sales averaged about 78,000 nationally, which was 2% lower than the same period last year. The weakness is most visible at the lower price points, where buyers are more mortgage-rate sensitive. The takeaway: the market is changing, but it is not changing equally everywhere. Local inventory, price point, property type, and buyer demand are creating very different housing market conditions across the country. About Mike Simonsen: Mike Simonsen is the Chief Economist at Compass International Holdings and founder of Altos Research. He is known for his real-time housing market analysis, tracking inventory, pricing, mortgage rates, and buyer demand weeks before traditional housing reports are released. Subscribe for weekly housing market updates and real-time housing data insights.   This post is for informational purposes only. It is not intended as financial, legal, or real estate advice. Any market forecasts or predictions discussed are speculative and are subject to change. Actual results may differ. You should seek your own professional advice before making decisions. Christie's International Real Estate disclaims any liability for reliance on this content. #HousingMarket #RealEstate #HousingMarketUpdate #RealEstateMarket #HousingTrends #HomePrices #Inventory#MortgageRates #HousingData #marketupdate #mikesimonsen