As national conversations about the housing market continue, we’re seeing more headlines suggesting there is a “lull” in real estate activity—even as mortgage rates begin to ease. However, and this cannot be said often enough: real estate is local.
Here in the South Bay cities and surrounding communities, the market is showing strong signs of activity, largely constrained by one key factor—limited inventory. Buyer demand remains solid, and well-positioned homes continue to attract meaningful interest.
When determining an asking price as a seller or crafting an offer as a buyer, missing the mark can be costly. That’s why it’s essential to discuss current conditions with an agent who is deeply immersed in local market activity rather than relying solely on national headlines.
It’s also important to understand what the data actually reflects. Much of the national real estate news is based on closed sales, which represent decisions made weeks or even months earlier. By contrast, pending sales—even though final prices are not yet public—often provide a more accurate picture of present market momentum.
This distinction is especially important at the start of a new year. Winter sales data often reflects the slower holiday season, when many buyers are researching and planning rather than actively purchasing. As the new year begins, those same buyers frequently re-enter the market ready to act. The key question becomes: how prepared are they now that the year is underway?
A couple of final thoughts:
First, consider the source of the information you’re reading. Some outlets rely on dramatic headlines designed to attract clicks, while respected industry economists take a more data-driven approach. For example, Lawrence Yun, Chief Economist for the National Association of Realtors, has projected that 2026 may bring an increase in home sales activity as market conditions stabilize.
Second, remember that annual predictions are simply educated forecasts. Everyone has an opinion, but what matters most is watching real-time data, identifying trends, and adjusting expectations as new information emerges. Once again, your local agent remains your best resource for interpreting these changes.
One principle remains constant: a well-priced home achieves the greatest success. Overpriced homes tend to leave buyers waiting on the sidelines, while accurately priced properties generate stronger engagement and better outcomes.
Stay informed—and if you have questions about today’s market, reach out to Team Plunkett anytime.
