The number of homes actively for sale grew by 35.8% year-over-year in August, according to data from Realtor.com. August marked the 10th consecutive month of inventory growth.
For August, active listings grew by 46% in the South, 35.7% in the West, 23.8% in the Midwest and 15.1% in the Northeast. Of the nation’s 50 largest metro areas, 11 had higher levels of inventory in August compared with pre-pandemic levels, including Austin (+36.6%), Memphis (+28.7%) and San Antonio (+25.2%).
However, the number of newly listed homes in August dropped by 0.9% compared to one year earlier while homes spent 53 days on the market, the slowest August in five years. Realtor.com Chief Economist Danielle Hale opined that while 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.”
During August, the median price of homes for sale was $429,990, a 1.3% year-over-year decline. But the median price per square foot grew by 2.3%, which Realtor.com attributed to a growing number of smaller and more affordable homes for sale. In August, as in the previous six months, the growth in homes priced in the $200,000 to $350,000 range outpaced all other price categories, as home inventory in this range grew by 46.1% compared with last year and was only down slightly from last month’s 47.3% level.
“As the market slows seasonally, fall is one of the best times to buy a house,” Hale continued. “Falling mortgage rates are likely to bring out additional home shoppers and a busier fall season than usual, but the boost in activity is unlikely to overwhelm the usual seasonal slowdown. 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.”
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