I just reviewed the latest housing trends data from Realtor.com Research for the week ending October 3rd, 2026, and there's quite a bit happening in the national market that's worth understanding. Mortgage rates have climbed to their highest point in nearly three years, sitting at 7.28%, which is putting real pressure on buyer purchasing power. These higher rates are the key driver of what we're seeing play out across the country right now in terms of inventory and seller behavior.
What's interesting is that while rates are making it tougher for buyers, homes are actually still moving off the market slightly faster than they were a year ago. That tells me sellers are reading the room and pricing their homes competitively rather than holding out for peak prices. We're seeing evidence of this in the fact that about one in five listings carried a price cut in September, the highest proportion since late 2022. At the same time, median listing prices have fallen for 38 consecutive weeks compared to the prior year, and homes are being listed at lower prices per square foot as well.
The inventory picture has shifted noticeably. According to Realtor.com Research, active listings are up 6.7% year-over-year, marking the fastest growth rate since February. However, the number of new listings actually fell 4.1% during the same period, which means we're seeing more homes for sale largely because existing homes aren't getting snatched up as quickly, not because sellers are rushing to list. This distinction matters because it shows the building inventory is a symptom of weaker buyer demand rather than a surge of new sellers hitting the market.
We're also getting closer to what we might consider normal market conditions. Inventory is now just 9.1% below pre-pandemic levels, the smallest gap since before COVID hit. That's a meaningful shift from where we've been for the past few years. The Realtor.com data also notes that the regional picture varies, with homes moving faster in the West while taking longer in the Midwest and Northeast, so market dynamics aren't uniform across the country.
What I am seeing locally here in the Bay Area and East Bay is consistent with these national trends, though our market has its own personality. Higher rates are definitely cooling demand, and I'm talking with more sellers who are taking a more realistic approach to pricing. For buyers in Fremont and across the East Bay, this environment actually presents some breathing room to be more selective and negotiate better terms, though the higher financing costs do offset some of that advantage. The key for anyone buying or selling right now is to recognize that we're in a transition period where smart pricing and realistic expectations matter more than ever.
