September 2026 Prescott Market Update – Pending Sales Bounce Back, Rates Hit a One-Year High, and Why This "Normal" Market Isn't Doom and Gloom

Good afternoon, everybody. Geoff Hyland here with The Hyland Group at eXp Realty in Prescott, bringing you your September 2026 market update. On a national level, August sales came in a little softer — but there's a silver lining tucked inside those numbers. Let's get into it.

Pending Sales Bounce Back From July's Dip

Pending sales for August were down 13.44% year over year, which on its own sounds discouraging. But here's the encouraging part: pending sales were up 18.4% from July. Remember, pending sales in one month typically translate into closings the following month, so July's pendings became August's closings — and August's rebound in pendings is a good sign for what closes in September.

That said, the year-over-year dip tells us buyers are still extremely rate sensitive, both nationally and right here in Prescott.

Rates Climb Back to a One-Year High

The National Association of Realtors is reporting that inventory overall is only slightly higher year over year — not by a huge margin — and demand is still being held back by affordability and, of course, the rate conversation.

In July, three members of the Federal Reserve voted to raise rates, which signals a shift in mentality heading into the September meetings. There's a lot of anticipation that rates could move up again, and as of today, the average national interest rate sits at 6.89% — a one-year high.

A Normal Market Is Not a Bad Market

Here's what I've been training my agents on: after 21 years in this business, what we're seeing right now is really more indicative of a normal market. That's the mentality both buyers and sellers need to adopt, and it's a big part of the education we're doing daily with our clients.

A normal market is typically a five to seven month supply. Right now, we're sitting at a five month supply. What that means in practice is that well-priced listings still move fast — sometimes within the first couple of weeks. When we talk about pricing, we're really talking about affordability, location, and condition. Homes that check those boxes are the ones moving in this market.

So if you're a seller, this is not doom and gloom — quite the opposite. Homes are selling every day, both locally and nationally. In fact, national home sales are only off by less than a 2% margin.

Days on Market and Local Inventory

Nationally, the average days on market is about 62 days. Locally, our MLS average is running about 65 days for homes that are actually selling.

As for active inventory, we're sitting at 1,209 site-built single-family homes active on our MLS as of September 1st. Those homes have been on the market for an average of 109 days, and they're currently priced about 9% over the average price per square foot of what's actually selling. That gap between what's listed and what's selling is worth paying close attention to, whether you're buying or selling.

Values Holding Steady

Home values have seen only a slight slide — less than 1% in Prescott, and not much change MLS-wide. I'd continue to describe this as a normal, stable market rather than anything alarming.

Price Reductions Aren't a Sign of Weakness

About 20% of overall inventory in the U.S. experienced a price reduction last month. That is not a sign of weakness — it's a sign of sellers reacting to the market and letting buyers know they're serious about selling. Keep an eye on price reductions, but also don't be surprised when a well-located, well-priced home in great condition comes on the market and sells quickly. Those properties are still moving.

The Bottom Line

August brought a bit of a mixed bag: pending sales softened year over year but bounced back meaningfully from July, rates climbed back to a one-year high, and inventory remains balanced at a normal five-month supply. Values are holding steady with only minor slippage, and price reductions are simply part of a healthy, functioning market — not a red flag.

If you're curious about the value of your home, or you're looking to buy and want a concise market analysis on a specific property, that's exactly where we come in.

Questions About Your Specific Situation?

Every buyer and seller has a unique story, and market statistics only tell part of it. Whether you're thinking about selling, relocating to Prescott, buying your first home, or simply trying to make sense of what today's market means for your plans, The Hyland Group is here to help.

Ready to make your move with confidence? Contact The HYLAND GROUP today. As the #1 team in Greater Prescott for 14 consecutive years with one sale every 24 hours, we'll help you navigate today's market with the expertise that comes from $1.7B+ in sales and serving more than 4,300 families.

Schedule your complimentary consultation today: 928-445-2100.

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