Published October 4, 2026 in Market Update

Southern Highlands is moving faster as supply tightens

The one fact that changes what you should do right now: the Real Estate Data Aggregator counted 221 homes sold in ZIP 89141 in the three months ending July 31, 2026, up 22.1% from a year before. At the same time, homes for sale there fell 18.6% to 254. More buyers, fewer homes. That shifts the balance.

Nationally, Realtor.com reported active listings topped 1.16 million homes in September 2026. Southern Highlands is not following that national trend. Supply here is shrinking, not growing.

The Southern Highlands picture, three months ending July 31, 2026

Across all three ZIP codes, the Real Estate Data Aggregator counted 513 homes sold, up 5.8%. Homes for sale fell 11.4% to 661. Pending sales rose 2% to 512. New listings slipped 1.4% to 690. The market is absorbing homes faster than new ones are arriving.

ZIP 89141 leads the way

ZIP 89141 is the Southern Highlands core. The Real Estate Data Aggregator shows the median sale price there was $548,000, up 2.4% from a year before. That is the only ZIP in this market where prices rose.

The Real Estate Data Aggregator put months of supply in ZIP 89141 at 3.5, down 1.8 months from a year before. That is the tightest supply of any ZIP here. And 33% of homes went under contract within two weeks of listing, up 5.4 points from a year before. Nearly 1 in 3 homes did not last two weeks on the market.

The sale-to-list ratio in ZIP 89141 was 98.5%, up 0.3 points from a year before. Sellers there are getting very close to their asking price. Realtor.com noted that mortgage rates climbed above 7% for the first time since January 2025, yet buyers in 89141 are still showing up.

ZIP 89123 is a mixed picture

The Real Estate Data Aggregator counted 173 homes sold in ZIP 89123, up 13.1% from a year before. That is real demand. But the median sale price slipped to $430,000, down 4.4%. Prices dipped a little even as more homes sold.

Homes for sale in 89123 fell 14.5% to 230. Supply dropped to 4.1 months, down 1.3 months. The Real Estate Data Aggregator also shows 16.8% of homes sold above list price, up 5 points from a year before. That is a signal that well-priced homes are drawing real competition.

Median days on market in 89123 was 57 days, 13 days longer than a year before. Not every home sold fast. Pricing still matters a lot here.

ZIP 89183 is moving in a different direction

ZIP 89183 tells a different story. The Real Estate Data Aggregator counted 119 homes sold there, down 21.2% from a year before. Homes for sale rose 7.3% to 177. Supply climbed to 4.6 months, up 1.2 months.

The median sale price in 89183 was $399,000, down 5.6%. Fewer homes sold, prices fell, and supply grew. The share of homes that sold above list price dropped 6.7 points to 9.2%. That is the weakest above-list reading of any ZIP here. Buyers in 89183 have more room to negotiate.

What the national picture adds

The Federal Housing Finance Agency reported U.S. house prices rose 2.6% from July 2025 to July 2026. That national gain is real, but ZIP 89141 beat it with a 2.4% gain, while 89123 and 89183 both fell. Local results are not the same as national ones.

Realtor.com reported that 20.8% of listings nationally took a price cut in September, the highest share since October 2022. In ZIP 89141, the sale-to-list ratio actually improved. That gap is worth knowing if you are setting a price here.

One street can read very differently from the whole ZIP code. The numbers above cover large areas. Your block may be tighter or softer than the ZIP average says.