US Housing Supply Hits Four-Year High

Home buyers face more to choose from and less competition this fall

In welcome news for US home buyers craving more options, there are now more properties on the market than there have been in at least four years, according to a report from Realtor.com. The number of homes for sale nationwide grew 35.8% annually in August—the 10th straight month of growth — and is now at its highest level since May 2020, the online property portal said. New sellers pulled back though, with 0.9% fewer homes hitting the market in August compared to last year.

Rising Real Estate

• The number of homes for sale in the US grows 35.8% annually in August
• US residential real estate market witnesses 10th straight month of growth— highest level since May 2020
• Median price per square foot grows by 2.3%

As the number of homes on the market continues to climb, at the same time, “price cuts are more common, asking prices are moderating, and homes are taking longer to sell,” said Danielle Hale, Chief Economist at Realtor.com, in the report.

But despite the market improvements, there are still buyers and sellers waiting for more favorable conditions. “The widely anticipated Fed rate cut has already ushered in lower mortgage rates, but it seems that some buyers and sellers are waiting for additional declines,” Hale said. As a result “shoppers, who are out this fall, are likely to face lower competition than is expected in spring 2025 as more shoppers anticipate better mortgage rates.”

The average 30-year mortgage rate stood at 6.35% as of August 29, the lowest it’s been in more than a year, according to lender Freddie Mac. Meanwhile, the median price of homes for sale in August was $429,990, dropping 1.3% year over year. At the same time, the median price per square foot grew by 2.3%, indicating that the inventory of smaller and more affordable homes continues to grow in share, according to Realtor.com.

The percentage of homes with price reductions rose last month to 19.2%—up 3% from last August, and homes spent a median 53 days on the market, the slowest August in five years. “We have found that the market slows by about one day for every 5.5 percentage point increase in the year-over-year number of active listings,” Ralph McLaughin, Senior Economist at Realtor.com, said in the report. “Given the rapid growth in inventory we’re seeing now, that can mean changes in some markets of up to 15 to 20 more days on the market than last year.”

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