U.S. Housing Inventory Hits Four-Year High as Demand Stalls

New listings rose 2.1% week-over-week, pushing active supply higher and providing house hunters with much-needed options. Despite this influx, pending home sales remain sluggish, falling 0.1% to their lowest level since February. The market remains constrained by a median mortgage rate of 6.66%, which keeps borrowing costs near their highest point in the last year.

Sellers are beginning to acknowledge the cooling demand. Although the typical home-sale price increased 2.2% year-over-year to $398,632, the median asking price saw a slight decline of 0.1%. This reduction suggests a necessary adjustment in expectations as buyers push back against affordability hurdles. While move-in ready homes in high-demand pockets still trigger bidding wars—with roughly 25.9% of properties selling above the asking price—the broader national trend points toward a softening market. Affluent buyers in cities like San Francisco and West Palm Beach continue to drive price growth, but more affordable markets such as Milwaukee and Cincinnati are seeing more consistent sales activity.