First Choice Real Estate

What Smaller U.S. Homes Could Mean for Buyers
There’s a noticeable shift happening in the U.S. housing market—a trend I’m seeing firsthand here in Brea and beyond. Over the last decade, the average new single-family home has gone from 2,700 to 2,400 square feet, while the price per square foot climbed by about 72%. By 2025, one in four new homes sold nationwide measured under 1,800 square feet, compared to just one in six a decade ago. Larger new homes (3,000+ sq-ft) have become less common, now accounting for one in five sales instead of one in three. Builders are leaning into smaller floor plans to balance out the rising costs of land, labor, and materials, which helps keep some homes within budget—even as mortgage rates hover between 6% and 7%. For many first-time and budget-focused buyers, these smaller homes can mean a more manageable down payment and monthly expense. At the same time, it’s important to recognize that the higher price per square foot means affordability is still a real challenge. As always, my priority is helping buyers navigate these changes with clear guidance and efficient service, so they can make confident decisions in a changing market.

U.S. Housing Market Rebalances Slowly
Watching the U.S. housing market in recent weeks, I’ve noticed a slow but steady shift toward more balance—something many of my clients in Brea and beyond have been hoping for. Active inventory is up about 4% year-over-year nationwide, although that growth has eased a bit after five weeks of steady increases. This indicates that the rebalancing is happening, but without a sudden surge in available homes.

Homes are typically spending 61 days on the market—unchanged from last year and right in line with what we expect for late Q3, especially after the busier pace earlier in 2026. New listings are down by about 1% compared to last year, which brings us close to 2025 numbers. Many buyers are still cautious due to affordability concerns, while some sellers are holding back, unsure about testing current pricing.

The median listing price now sits at $419,000, roughly 1% lower than last year, and the median price per square foot has dipped to $222—the lowest since early Q1 2026. Inventory gains and higher mortgage rates are gently shifting conditions to favor buyers, but overall, the national market is moving at a measured, deliberate pace rather than racing ahead. As always, I’m here to help you navigate these changing conditions with clear guidance and efficient service.

How Real Estate Agents Can Improve Their Professional Skills Over Time
In real estate, staying at the top of your game means never stopping your growth. I believe that continuous professional development—whether it’s earning specialized certifications, attending industry events, or keeping up with the latest tech like CRM systems and virtual tours—makes a real difference in the level of service we can offer. I’ve always found that strong communication, openness to feedback, and building genuine relationships are just as important as any tool or training. That’s how I strive to guide my clients smoothly through each step of buying or selling a home here in Brea and the surrounding communities.

Fed Raises Key Rate to 3.75%-4%
The Federal Reserve has increased its key rate by 0.25%, bringing it to a range of 3.75%-4%. This marks the first rate hike since July 2023. Officials are also suggesting that another increase could be on the horizon, as inflation is still sitting above the Fed’s 2% target. The next opportunity for the Fed to revisit this will be at their October 27-28, 2026 meeting, when they’ll evaluate the current state of inflation and the broader economy.

For those navigating the real estate market here in Brea and neighboring communities, these shifts in interest rates are important to watch. Changes like this can influence mortgage rates, affordability, and the overall pace of home buying and selling. My commitment is to offer clear communication and steady guidance, helping clients understand how economic decisions at the national level might play out locally. If you have questions about what this means for your next move, I’m here to help you make sense of it.

U.S. Home Prices Ease Across Major Metros
We're seeing a notable shift in housing trends across the nation: in mid-Q3, the price per square foot declined year-over-year in 36 of the 50 largest U.S. metro areas. Nationally, this measure dropped by about 2% compared to last year, extending a ten-month streak of gradual price softening. As the quarter wrapped up, the market’s momentum slowed, with more sellers making significant price adjustments to better align with buyer expectations. High mortgage rates continue to impact affordability—especially in areas that saw rapid growth during the pandemic—leading to more negotiation and flexibility from sellers. Many markets that experienced those big pandemic surges are now seeing some of those gains recede, aided by inventory levels that remain higher than pre-pandemic norms. As someone who guides clients through every step of buying and selling, I’m keeping a close eye on these shifts to provide the most current advice and support in our Brea community and beyond.

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US Cash Sales Offer Fast Signal
Cash sales have consistently accounted for about 25% of existing-home transactions across the US in recent years. As a Realtor® serving Brea and nearby communities, I pay close attention to this trend because cash activity can provide an early signal about the direction of the market—sometimes even before mortgage data or new construction figures catch up. When we see cash buyers increasing while prices are climbing, it often points to heightened competition among buyers. On the other hand, if the cash share rises even as overall sales volume dips, it may reflect challenges for financed buyers getting loans approved. If cash purchases decline but home prices remain steady, it could suggest that lending standards have eased a bit, allowing more traditional buyers back into the market and promoting healthier activity overall.

Many smaller cash investors focus on homes with unique circumstances—such as probate, tax delinquency, or properties needing significant repairs—which means that even during periods of affordability concerns or slower mortgage activity, there’s still demand for older homes. For those considering single-family real estate investing, factors like local taxes, title insurance, renovation costs, and hands-on property management really shape the experience—making local expertise truly valuable and scale more challenging. Looking ahead, it’s likely we’ll see consolidation of margins rather than sweeping national roll-ups, and international investors may find greater success by partnering with local experts rather than going it alone. As always, understanding these dynamics helps me guide clients with up-to-date, practical insights every step of the way.