As someone who’s spent over three decades guiding clients through market cycles, I’m seeing a notable shift: In mid-Q3, the price per square foot dropped year-over-year in 36 out of the 50 largest U.S. metro areas. Nationally, we registered about a 2% decline in price per square foot compared to last year, making this the tenth consecutive month of annual softening for this key measure. The close of mid-Q3 brought a loss of momentum, prompting many sellers to reduce their asking prices more significantly, helping to bridge the gap with buyers’ expectations. Persistently high mortgage rates are putting pressure on affordability—especially in regions that saw rapid appreciation during the pandemic—leading sellers to find more common ground with buyers. According to an economist, many of the markets that boomed are now giving back some of those pandemic-era gains, influenced by inventory levels that remain above pre-pandemic norms. As always, interpreting these trends through the lens of both local experience and global perspective allows me to help clients and peers navigate this evolving landscape with confidence.
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