U.S. Housing Market Inventory Hits Four-Month High as Buyers Retreat

For the four-week period ending August 23, new home listings rose 0.4%, pushing total inventory to its highest point since May. This increase in supply comes as demand softens; pending home sales fell 1.1% week-over-week. Prospective buyers are increasingly cautious, deterred by a median U.S. home-sale price exceeding $400,000 and mortgage rates that remain near 13-month highs.

This cooling demand has opened a strategic window for those still in the market, particularly in cities like Miami, Nashville, and across Texas. Chen Zhao, Redfin’s head of economics research, suggests that buyers should target properties that have lingered on the market for several weeks. Sellers of these homes are often more receptive to price reductions or concessions, such as mortgage-rate buydowns or repair credits, to avoid the costs of further stagnation. As the market approaches the post-Labor Day period, the leverage has firmly shifted toward the buyer, provided they move with precision.