Look, what's happening in the market right now is pretty interesting, and frankly, it's something I'm watching closely. According to Redfin News, we're seeing new listings come on at levels we haven't hit in four years. That's actually good news if you're out there looking to buy, because it means there's more inventory available for you to choose from.
But here's the catch, and this is the part that tells me something important is shifting. While we've got all these homes coming on the market, buyer interest hasn't kept pace. Redfin is reporting that pending sales have dropped to their lowest point since back in February, which suggests folks aren't jumping at these opportunities the way you'd expect.
The reason isn't hard to figure out. Mortgage rates have climbed to their highest level so far this year, and that's putting real pressure on affordability. When rates go up, your monthly payment goes up too, and that's enough to make a lot of potential buyers pause and reconsider whether now is the right time to pull the trigger.
What I am seeing locally here in the Bay Area is that this inventory increase gives us some breathing room we haven't had in a while. For buyers, especially those who've been priced out or frustrated by limited choices, having more homes to look at is genuinely helpful. But the higher rates are a real headwind, and sellers in our market should be prepared to be more competitive and realistic about pricing as we move forward.
