The cost of buying a home in the US has reached a 14-month high—by late Q3, the typical buyer’s monthly payment hit $2,600 as mortgage rates kept climbing and sale prices held steady. Nationally, the median home-sale price nudged up about 2% year-over-year to $399,000. That puts extra pressure on affordability, which is something I see my clients wrestling with every day here in Shelby and Jefferson Counties.
Despite the cost, we’re not seeing a big jump in pending sales month-over-month, and compared to last year, they’re actually down. Mortgage purchase applications dipped recently, and while new listings slowed a bit around the holidays, they’re still slightly ahead of last year’s pace. One thing that really stands out: about 21% of active sellers decided to cut their prices. Sharper pricing strategies are catching buyers’ eyes, while overpricing can leave a home lingering on the market—a lesson I always share with both buyers and sellers navigating these conditions.
Inventory is improving too, with active supply up about 2% from a year ago and nearly four months’ worth of homes available nationally. But we’re still not quite at a balanced market. I’ve seen firsthand how these national trends play out locally, and I’m always here to help you make sense of what it means for your next move—whether you’re buying your first home, upsizing, or finding that perfect spot to downsize into.
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