The U.S. housing market continued to tilt toward buyers in late August, as rising inventory met increasingly subdued demand. For the four weeks ending August 30, 2026, new listings reached their highest level since August 2022, giving prospective buyers more choices and greater negotiating leverage.
New listings increased 2.1% week over week and 8% year over year, while active listings rose 2.4% from a year earlier to more than 1.5 million homes. At the same time, pending home sales declined 2.5% year over year, reaching their lowest level since February.
Affordability remained a significant obstacle. The median U.S. sale price reached $398,632, up 2.2% from a year earlier, while the average 30-year mortgage rate remained elevated at 6.66%. The median asking price, however, edged down 0.1% year over year, signaling that some sellers were beginning to adjust expectations as buyers pushed back against elevated housing costs.
The market was also showing more signs of negotiation. 20.9% of listings experienced price drops, up from 20.2%, while the average sale-to-list price ratio stood at 98.7%. Housing supply reached four months, moving the market closer to the traditionally balanced range of four to five months.
Despite the broader cooling trend, demand remained strong for certain properties and markets. Nearly 26% of homes sold above their asking price, with move-in-ready homes in desirable neighborhoods continuing to attract competition. San Francisco and West Palm Beach recorded some of the largest annual price gains, while Cincinnati and Milwaukee combined strong price growth with increases in pending sales.
Overall, the latest data pointed to a housing market where inventory was expanding faster than demand. While high mortgage rates and elevated home prices continued to constrain buyers, the growing supply of homes and increasing price reductions were creating more opportunities for those who remained active in the market.
Source: Redfin
