Visalia new home permits defy interest rate rise –

Get ready for 8% mortgages? As of October 2, 2026, current 30-Year fixed mortgage rates are 7.75% says Zillow. Borrowing rates have climbed from the 6% level in spring of this year over just a few months, making it harder for a buyer to afford a new home and for builders to finance their new subdivisions. If we are all worried about inflation, the September numbers for new single-family home permits in Visalia, just published, may be a big surprise.

Here are the numbers. For the year 2026, Visalia has permitted  the most new homes in a decade, 683 over the first 9 months of 2026 vs 12 month numbers for all previous years. Builders in Visialia have been averaging around 70 new home permits a month in 2026 vs about 48 a month in 2025.
Despite a run-up in interest rates in September, Visalia home builders have not slowed down- they took out permits for 64 new homes vs 36 homes in September 2025.

Despite downbeat economics like record gas prices in the national scene and locally, Visalia’s economy continues to grow  while the price of a new home vs most of California remains a bargain – lower on average this year vs last,and strong competition among local and national  builders.

So far this year, Visalia builders have permitted a record 1.3 million sf of new homes with an average price of $351,000 vs $365,000 in 2025. Visialia home affordability stacks up well compared to much of California that has an average  median existing home price of around $900,00.

But home sales here are not all good news.California Association of Realtors reports in August (latest report) that existing home sales in the county are down 7% month over month with an average price around $400,000. Tulare County Assn of Realtors figures show the number of existing homes for sale at a multi-year high of over 800 with sales of about 225 a month.