October 2026 Market Update | It may be hot outside but the market is finally cooling off....

What our team is seeing these past few months

We've noticed a shift in the North County real estate market since late August/September, with buyer activity slowing as mortgage rates have climbed into the mid-7% range. That said, we're still seeing showings and interest in our listings. The key is presentation and pricing. Homes that are beautifully staged, marketed well, and priced strategically are still attracting buyers (which is exactly why we stage every one of our listings).

On the flip side, it's actually a great time to be a buyer (we know, we know... interest rates👺). BUT our active buyers and investors are successfully negotiating below asking price, with more opportunities for favorable terms and seller concessions. There's real negotiating power in today's market, and we're making the most of it for our clients.

For buyers considering waiting, there's something worth keeping in mind. While holding out for lower interest rates may seem like the best move, what happens when rates finally come down? More buyers who have been sitting on the sidelines are likely to jump back into the market. With inventory already limited, that could mean more competition, multiple offers, and upward pressure on prices once again. There's no perfect time to buy, but this market offers some advantages we haven't seen in a while. For buyers who are financially ready, it may be worth exploring those opportunities now, with the possibility of refinancing if rates improve down the road, or negotiating a seller-paid rate buy-down.

Looking ahead, we don't anticipate a significant drop in mortgage rates before the end of the year. Rates will likely remain elevated and somewhat volatile in the near term, with potential improvement in 2027 (if inflation cools and bond yields ease). We expect the market to remain a bit slower through the remainder of 2026, which could create additional opportunities for buyers while making strategic pricing and presentation even more important for sellers.

The bottom line: Whether you're buying or selling, there are opportunities in every market. Having the right strategy, strong negotiation skills, and an experienced team on your side makes all the difference.