August 2025

Inventory (supply) has just hit its highest level since 2009. Many sellers have reduced their prices, but pricing right from day one has proven to be the smartest play.  

• The housing market continues to deteriorate, with new homes now selling at a rare discount to existing homes, signaling deepening sector weakness ahead.

• Without a surge in incomes or much lower mortgage rates, a significant home price decline is the most likely path to improve housing affordability, risking broader economic fallout.

• Pricing is more important than ever so make sure you have the data first before putting your house on the market. Be wary of high price opinions because prices have definitely come down since the peak average sale price of $1.3M in June 2022 compared to $1,141,357 in July last month. 86% of the financial markets believe the Fed will reduce interest rates by a quarter point. While that's an improvement, it's not making homes affordable enough to put a dent in these historical inventory levels. When rates do drop next week, expect to see a lot of homes go pending after accepting an offer.