According to Redfin News, the residential real estate market is experiencing a shift where some prospective buyers are stepping back due to affordability pressures, which is giving an advantage to those who remain actively shopping. The data from the four-week period ending in early September shows that about one in five home sellers are taking price reductions to move their inventory, signaling that realistic pricing from the start has become an important strategy for closing deals.
Looking at the national snapshot during this period, the median sale price sits around $399,000, showing modest year-over-year growth. Monthly mortgage payments are running near $2,600 on average with rates hovering around 6.7 percent, marking the highest payment levels we have seen since mid-2025. These elevated carrying costs appear to be weighing on buyer activity, with pending sales down slightly year-over-year.
The supply picture tells an interesting story. New listings have actually increased modestly compared to last year, and active inventory continues to grow. We are seeing about three and a half months of supply available in most markets, which is below what economists typically consider balanced conditions. This means sellers still have some advantage, though the dynamics are tilting in ways we have not seen in recent years.
Here is something worth noting from Redfin's reporting: despite more homes being available, the percentage of homes selling above their asking price has ticked up to just over 25 percent. The overall sale-to-list price ratio remains strong at about 98.7 percent. These metrics suggest that while affordability is pushing some buyers away, those who are still in the market remain competitive and are willing to bid up prices on homes they want.
What I am seeing locally here in the Bay Area and across the East Bay is that this national trend is very much playing out in our region. Buyers who have the financial staying power right now are finding less competition, which gives them more room to negotiate than they had a year ago. For sellers, the message is clear: come to market with realistic pricing and solid condition, because the easy sales to overpriced homes are largely gone. Those of us working with buyers need to focus on the qualified, serious purchasers who understand what they can actually afford in this environment.
