Published October 18, 2026 in Market Update

Higher rates have not stopped demand in the tightest part of the market

By Sherwyn Colonia

Real estate, Primary market

Freddie Mac put the average 30-year fixed rate at 7.40% on October 15, 2026. That is a real cost. But in ZIP 89031, buyers kept showing up anyway. That tells you something about where demand is holding firm.

The Real Estate Data Aggregator counted 2.9 months of supply in ZIP 89031 for the three months ending August 31, 2026. That is down 1 month from the same period in 2025. Less than 3 months of supply means sellers there have real company when they list.

The Real Estate Data Aggregator counted 268 homes sold in ZIP 89031 in the three months ending August 31, 2026. That is up 24.1% from the same months of 2025. Pending sales rose 22% too. Both numbers moved the same direction. That is not a fluke.

Homes sold in 43 days at the median. That is 5 days shorter than a year before. Sellers got 99.3% of their list price on average. Price your home right and you are not giving much away.

How the other ZIP codes compare on supply

Not every part of this market is as tight. The Real Estate Data Aggregator shows a wide range across the area for the three months ending August 31, 2026.

ZIP 89178 was close behind at 3 months of supply, according to the Real Estate Data Aggregator. That is down 1.5 months from a year before. The Real Estate Data Aggregator also counted homes sold there up 19.5% and days on market 3 days shorter. Two of the tightest ZIPs are moving in the same direction.

Where it is looser

The Real Estate Data Aggregator counted 7.4 months of supply in ZIP 89119 and 6.6 months in ZIP 89101 for the same period. More supply means buyers have more choices. It also means sellers there need to price carefully.

What the national picture adds

The National Association of Realtors reported existing-home sales of 3.99 million units in September 2026. Prices rose 1.3% nationally in that same month. This market's tightest ZIP codes are outpacing that picture on sales volume.

Realtor.com put the national median days on market at 61 days for the week ending October 10, 2026. The Real Estate Data Aggregator counted 43 days in ZIP 89031. That is 18 days faster than the national reading.

What the rate means in practice

Freddie Mac also reported a 15-year fixed rate of 6.71% on October 15, 2026. Neither rate is low. But the Real Estate Data Aggregator shows 32.3% of homes in ZIP 89031 went under contract within two weeks of listing in the three months ending August 31, 2026. That share is up 0.6 points from a year before. Rates have not slowed the quickest buyers.

ZIP 89130 had the highest two-week contract rate in the data: 37.5%, up 11 points from a year before, per the Real Estate Data Aggregator. That is a meaningful jump. Some parts of this market are moving faster than the headline rate suggests.

A note on what this means for you

For buyers: the tightest ZIP codes are not waiting. The Real Estate Data Aggregator shows homes going under contract fast and sellers getting close to full list price. Being ready matters more than timing the rate.

For sellers: well-priced homes in ZIP 89031 and ZIP 89178 are still finding buyers quickly. Homes in ZIP 89119 and ZIP 89101 are sitting longer. Pricing to the ZIP code, not to the headline, is the honest move.