Here's a quick look at the Birmingham, Michigan real estate market this month. Homes are selling at similar prices as last year. Fewer properties are changing hands, and the number of available homes is stable.

Nearly 1 in 5 active home listings—specifically, 20.4%—have seen price reductions recently, marking a shift worth noting. As someone who’s spent decades guiding clients through all types of markets, I can tell you that this kind of adjustment reflects the broader challenges we’re seeing nationally: homes going under contract dipped by less than 1% in mid-Q3, ending an eight-month stretch of gains. Higher borrowing costs, with the average 30-year fixed mortgage peaking near 6.7%, have certainly influenced buyer demand and the overall pace of transactions.

Despite these headwinds, the market remains dynamic. The national median list price dropped to $424,500, active listings edged up about 4%, and new listings tapered slightly. Interestingly, fewer sellers chose to step back, with delistings down around 13%. This slower tempo has given buyers a bit more time and leverage, while sellers who use strategic pricing are still closing successful deals—a balancing act I often discuss with both clients and fellow professionals. Looking ahead, it’s not just about whether rates fall, but whether they hold steady near 6.7%. If they do, we may see even more price adjustments or a pause in listings. Navigating these trends effectively takes a careful approach, and staying informed is key to making sound decisions in today’s market.

Builder confidence across the U.S. has reached its lowest level in the past year, with the builder-confidence index dropping 3 points to 32 in late Q3. Sales conditions have also softened, now at 35, and expectations for the next six months have slipped to 37. Buyer traffic remains steady but subdued at 23. Notably, 38% of builders have reduced prices, and two-thirds are offering incentives—an increase from 63% earlier in the quarter. Mortgage applications for new-home purchases have declined for the fifth consecutive month, as average 30-year rates linger in the high-6% range. Larger builders are responding by leveraging rate buydowns, allowing buyers to access below-market mortgage rates, which has helped sustain sales without broad price reductions. With forecasts suggesting 30-year rates will remain at these elevated levels through 2027, navigating this environment requires both strategic insight and adaptability. In my experience guiding clients and advising fellow professionals, understanding these shifts is essential for making sound decisions—whether you’re buying, selling, or investing. My commitment to staying ahead of market trends ensures that clients receive informed guidance, even as the landscape evolves.

Observing the latest national inventory trends, it’s clear that active listings have continued their gradual climb—reaching 1.14 million by mid-Q3 2026, a modest 4% increase over last year’s 1.1 million. This is a notable slowdown compared to the robust 21% growth we saw a year ago, reflecting how quickly market dynamics can shift. Even with this improvement from the recent low of around 2% growth in late Q2, the pace remains measured. By the close of mid-Q3, 18 states and DC had surpassed their pre-pandemic 2019 inventory levels, but nationwide, we’re still about 8% below where we stood in 2019, with 1.14 million active listings versus 1.24 million. As someone who’s navigated shifting supply cycles for over three decades, I see this softening as a sign of a market finding its equilibrium—flat prices and a gentler adjustment after the post-boom years. With higher yields and mortgage rates on the horizon, both buyers and sellers will need to stay informed and adapt as momentum is tested. My focus remains on providing clarity and insight for anyone making decisions in this evolving landscape.

Indigenous Peoples’ Day celebrates, recognizes, and honors the beautiful traditions and cultures of the Indigenous People
We take a stand for and support the indigenous people on this day.
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It’s fascinating to see how seller concessions have reached a new peak in the US housing market—about 45% of recent home sales included a concession, the highest mid-Q3 share we’ve seen since at least 2020. That figure is up from approximately 43% a year prior, reflecting the increased leverage buyers have gained as inventory rises and competition eases. These concessions come in many forms: assistance with repairs, closing costs, or even mortgage-rate buydowns, providing buyers with additional ways to reduce their total purchase expenses beyond simple price reductions. Sellers are adapting, offering credits and buydowns in addition to lowering prices, which is reshaping how negotiations unfold and allowing for greater flexibility in deal structures. Notably, around 16% of homes sold in mid-Q3 combined a price reduction with a concession—opening new avenues for buyers to manage entry costs. Drawing on over three decades in residential and investment real estate, I’ve seen how these evolving strategies can create opportunities for both buyers and sellers, and I remain committed to guiding clients through these shifting dynamics with clarity and confidence.

The most recent data confirms a notable shift in the US housing market: existing-home sales have dipped to a 14-month low, now sitting just below 4 million at a 3.98M annual pace in mid-Q3—a 2% decrease month-over-month. With over three decades guiding clients through changing markets, I’ve seen how these numbers reflect broader buyer sentiment and evolving opportunities. Mortgage rates are averaging close to 7% for a 30-year fixed, which has cooled some activity, but inventory has grown to a 4.9-month supply. This means buyers have more options, and listings are building across the country—a dynamic that brings new negotiating power for those ready to make a move.

The median existing-home price reached $429,100, setting a new record for mid-Q3. Higher-priced properties are still driving the strongest activity, a trend I’ve observed not only in Michigan but also in broader markets. Encouragingly, rising wages and steady job growth are supporting demand. First-time buyers represented 30% of mid-Q3 purchases, while cash deals accounted for 27%, and homes typically spent 31 days on the market. As both a Realtor and international real estate instructor, my focus remains on translating these trends into informed strategies for clients and colleagues. Whether you’re considering your next purchase or analyzing investment opportunities, understanding these shifts is key to making confident, well-timed decisions.