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We're seeing some notable shifts in the national housing landscape: in Mid-Q3, the price per square foot was down about 2% year-over-year nationwide, and 36 of the 50 largest U.S. metro areas experienced declines. This marks the tenth consecutive month of softer price growth, reflecting a broader cooling trend across major markets. As the quarter wrapped up, many sellers began adjusting their expectations, with sharper price cuts helping to bridge the gap with buyers—especially in areas that saw big surges during the pandemic. High mortgage rates remain a hurdle for affordability, contributing to this shift. Economists point out that many of the markets that boomed are now giving back some of those pandemic gains, partly due to inventory levels that are higher than before 2020. In the High Desert and beyond, these trends remind me how important it is to stay nimble, informed, and focused on each client's unique needs. My approach continues to center on honest communication and sound strategy—whether you're buying, selling, or just exploring your options in a changing market.

Over the last decade, we've seen the average size of new single-family homes in the U.S. shrink from 2,700 to 2,400 square feet, even as the price per square foot jumped about 72%. In 2025, one in four new homes sold will be under 1,800 square feet—up from just one in six ten years ago. Larger homes of 3,000 square feet or more have become less common, now making up only one in five new sales compared to about one in three previously. Builders are increasingly turning to smaller home designs to help buyers manage costs, especially with mortgage rates hovering around 6% to 7%. For many first-time and budget-conscious buyers, these smaller homes can make down payments and monthly expenses more manageable—even though the cost per square foot remains high. In our High Desert market, I’ve found that understanding these trends is key to helping clients make confident, informed decisions, whether you’re looking for your first home or planning your next move. For me, real estate is about more than just transactions—it’s about guiding you toward the home and lifestyle that fit your goals.

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September brought some notable shifts across the U.S. housing market, and I’ve been tracking these signals closely to help my clients navigate the landscape with confidence. Pending home sales, after eight months of steady gains, edged slightly negative compared to last year—higher borrowing costs are clearly slowing buyer activity. Contract signings softened, average days on market rose to 60, and mortgage rates moved from around 6% in late Q1 to the high-6% range.

For those considering a move, buyers are gaining a bit more leverage: the median list price dipped to $424,500, price cuts are visible on about 20% of listings, delistings dropped year-over-year, and active inventory crept up by about 4%. Still, even with more homes on the market, national inventory remains about 11% below pre-pandemic norms, highlighting the ongoing housing shortage beneath the surface.

As a local High Desert specialist, I’m paying close attention to seller delistings, evolving pricing strategies, and how our region compares with national trends. It’s a dynamic time, and my focus is on helping you move forward with clarity—whether you’re buying, selling, or just exploring your options.

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In the four weeks ending August 23, new US listings ↑0.4% weekly, while total homes for sale ↑0.5%, reaching their highest levels since Early-Q2.
Pending US home sales ↓1.1% weekly to a 6-mo low, as high housing costs kept many buyers sidelined despite inventory improving nationally.
The median US home-sale price ↑1.9% yearly to >$400K, while the avg. mortgage rate sat near 7%, close to a 13-mo high.
Rising inventory and softer demand created buyer-friendly conditions, giving active shoppers more room to negotiate price cuts or concessions in many US markets.
Experts said homes listed for several weeks often offered the best leverage, while sellers benefited from realistic pricing instead of chasing prices from prior years.

One of the best signals for understanding shifts in our real estate market is the share of cash sales. Recently, about 25% of existing-home transactions in the US have been cash deals. Cash sales often provide a clearer, faster read on market dynamics than traditional mortgages or new construction numbers. When we see cash buyers competing even as prices rise, it's a sign of strong demand and heightened buyer competition. But if cash purchases rise while overall sales volume drops, it often points to financing challenges sidelining those who rely on loans. Conversely, when cash sales decrease but prices remain steady, it may mean lending conditions have improved—allowing more buyers to step back in and helping the market normalize.

In the High Desert and beyond, smaller cash investors often step in on homes facing probate, tax issues, deferred maintenance, or when families are relocating. These properties—especially older homes—continue to attract attention from cash buyers, particularly when affordability becomes a concern and financed purchases slow down. Local expertise is crucial: factors like property taxes, title insurance, renovation costs, and hands-on management make scaling difficult, but they also reward those who truly know the area and approach each deal with discipline.

Looking forward, I expect we'll see greater consolidation of margins rather than a wave of large-scale buyouts. For international investors, the best results may come from partnering with local experts rather than trying to navigate our unique markets alone. As always, my focus remains on guiding clients through these trends with clear communication and an unwavering commitment to their goals—making every step as smooth and rewarding as possible.

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