I recently listened to an episode of the wonderful Steven Thomas’ podcast, “Let’s Talk Housing, “moderated by Brennen Thomas. Below, I’ve summarized my key takeaways and thoughts about the brilliant market analysis Steven shared.
Inventory and Demand
Right now, there’s been a surge in inventory across the U.S. and a drop in demand, meaning fewer pending sales and homes spending more time on the market. My take? It’s to be expected. It’s summertime, people take vacation and a slightly slower pace of market activity is to be expected. When demand is down and inventory is up, you’ve got the makings of a slower market.
Rates
A new Freddie Mac survey revealed we reached the highest rates of the year, or since last August, and throughout this quarter we’ve seen rates fluctuate between 6.5% and 6.75%, whereas last year, we were holding steady below 6.5% for a majority of the year. We’re slightly higher this year, says Thomas, which means homes are a little less affordable than they were this time last year. Should the inflation levels and economy stabilize, Thomas predicts we’ll see slightly lower rates for the second half of the year but as I’ve said many times before, nobody has a crystal ball for interest rates. The best we can do is analyze the marketplace before us and find the opportunities based on your particular real estate needs. However, here’s hoping we see rates come down for the second half of 2026!
Home Prices
Steven Thomas said lots of sellers are refreshing their listings, pulling them off the market and placing them back on, perhaps with new photos or at an improved price. However, actual median home price has remained relatively steady year-over-year, with minimal price drops that are reflective of a market aligning with what prices should be. Some people overstepped their pricing bounds last year, trying to push the limit of what price they might get and savvy buyers immediately spotted it and the home didn’t sell. Thomas says in this market, there is no extra cushion, you cannot “test a price” just to see. You’ve got to be accurate with your pricing and identify the best price based on local market conditions and determining factors like location and condition, to determine what a buyer will pay. Thomas said it’s not about what a seller thinks their home is worth; it’s what the marketplace determines the price should be. Sellers should meet with an experienced real estate professional who can give them a realistic price and figure out if that price meets their goals and expectations, and whether now is the time to sell.
Showcase Properties
What is showcase property? It’s a house with that special “wow factor.” The photos are spectacular and the home, in person, is even better. It’s a gorgeous property in amazing condition and upon stepping through the front door, you get that immediate feeling of home. Unfortunately, if you love it, chances are pretty high that other buyers love it, too and so these showcase homes often get into multiple offer, above-asking situations. For sellers, a showcase home provides a distinct advantage in negotiations and getting an advantageous sales price. Other homes may need more work. They languish on the market, receive a price improvement and don’t photograph as spectacularly as a showcase home would. There’s nothing wrong with this house, it just needs a little extra work to make it shine. Buyers should chat with their agent from the outset and decide whether they want to be in that competitive showcase home space or, if they’re willing to look at homes that have been overlooked. As I say, homes priced right, in pristine condition and in a fantastic location will always sell. No matter what’s happening with the market, a showcase home will fly off the shelves!
As we wind down the summer market and begin to think about fall, please reach out with any real estate questions you might have. I’m always happy to share what’s happening locally in our Los Angeles County markets, and how those trends and trajectories can be put to work for you!
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Andrew Manning • REALTOR® • Berkshire Hathaway HomeServices California Properties • DRE: 00941825 • 818-380-2147 • andrew@andrewmanning.com