US Housing Supply Climbs to 6-Year Peak

The number of homes for sale in the United States hit its highest level since 2020 amid a surge in new listings last month.

In August, there were 1,534,918 total homes for sale, up 3.9 percent from July and 2.7 percent from a year back, real estate brokerage Redfin said in a Sept. 9 report.

Seattle saw the largest year-over-year jump in homes for sale, which rose by 24.2 percent in August. This was followed by Boston, and San Jose in California, each of which registered a 17 percent-plus increase in for-sale properties.

New listings of homes for sale rose 2.6 percent on a monthly basis to hit their highest level in more than four years last month.

While housing supply is burgeoning, homebuying demand is stalling amid high housing costs, according to Redfin.

The median home-sale price rose to $398,596, which is the highest August level on record, according to the report. Moreover, the monthly average mortgage rate remains elevated.

The weekly average rate on a 30-year fixed-rate mortgage was at 6.71 percent for the week ending Sept. 2, which is the highest level in more than a year, according to data from Freddie Mac.

The rate briefly dipped below 6 percent in late February, but has since risen amid the U.S.–Iran war. Since mid-July, the rate has consistently stayed above 6.5 percent every week, making mortgage payments more expensive for prospective buyers.

Buyers’ Market

Chen Zhao, Redfin’s head of economics research, said in the statement that while housing continues to remain expensive, certain market forces are now tilted in the favor of buyers.

“More listings mean buyers can take their time, compare homes and negotiate instead of feeling pressured to jump on the first decent property they see,” Zhao said.

“In many parts of the country, buyers may be able to negotiate on price, repairs or closing costs—and walk away if the numbers don’t work. That doesn’t make a home within reach for everyone, but for people who can afford to buy now, it’s a much friendlier market than it was a few years ago.”

While the housing market may be more favorable for buyers, home sales declined last month. Real estate marketplace Zillow said in a Sept. 8 report that August home sales dipped 0.6 percent year over year, blaming elevated mortgage rates for slow sales activity.

Zillow predicts a “soft close” to the housing market this year. While more homes are available for sale than a year ago, many households are expected to avoid buying a property until rates ease, the company said.

In addition to high borrowing costs, economic uncertainty and rising inflation are also curbing buyer demand and negatively impacting new home sales, the National Association of Home Builders (NAHB) said in an Aug. 25 statement.

A survey conducted by the association found most builders were continuing to offer sales incentives in order to support new home sales, NAHB Chairman Bill Owens said in the statement.

Robert Dietz, NAHB chief economist, warned that the single-family home building market was “on track for a second consecutive annual decline in 2026.”

The Trump administration and lawmakers have taken steps to address affordable housing.

In July, the 21st Century ROAD to Housing Act became law. The legislation’s provisions seek to ensure housing affordability through measures such as rolling back various regulations and offering financial support to homebuyers, builders, and local and state governments.

Earlier this month, the Department of Housing and Urban Development (HUD) announced a memorandum repealing a 2013 housing design guidance to make dwellings more affordable.

According to HUD, the repealed guidance resulted in more than $110 million in “onerous repair costs” imposed on multifamily building owners over the past five years.