Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting a daunting task in recent times.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 35.8% annually in August to the highest level since May 2020, according to Realtor.com.
Even better, some of the largest inventory gains came in comparatively inexpensive cities and the share of listings with price reductions grew.
Find your lowest rate. Start hereActive listings make huge leap in August
In a promising sign for prospective borrowers, active home listings surged 35.8% annually in August, according to Realtor.com’s Housing Report.
A typical day during the month yielded 909,344 for-sale listings and marked the tenth straight month — and 24th of the past 30 — with year-over-year inventory growth. The listing count overshadowed July’s 884,273 and August 2023’s 669,173. Though active listings trail August 2019’s by 26.4%, so there’s still a way to go to reach pre-covid housing supply.
“As the number of homes on the market continues to climb, price cuts are more common, asking prices are moderating, and homes are taking longer to sell. 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,” said Danielle Hale, chief economist at Realtor.com.
Regionally, the South saw active listings grow most at a 45.6% annual rate. Then came the West at 35.4%, Midwest at 23.1% and Northeast at 13.9%.
Among the 50 largest U.S. housing markets, Tampa, Fla., led the way for the second straight month, with a year-over-year active listing count gain of 94.9%. Jumps of 78.7% in Orlando, Fla., 77.7% in San Diego, 75.1% in Denver, and 73.5% in Seattle rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest rises in listing count in August:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Days on Market | Price-Reduced Share |
| Tampa, Fla. | 90.1% | $415,000 | -6.20% | 64 | 29.3% |
| San Diego | 80.4% | $999,000 | -9.10% | 38 | 17.8% |
| Orlando, Fla. | 76.9% | $435,000 | -5.20% | 63 | 25.2% |
| Miami | 72.2% | $530,000 | -11.70% | 74 | 17.3% |
| Seattle | 69.3% | $775,000 | -3.10% | 38 | 17.4% |
| Jacksonville, Fla. | 68.3% | $409,850 | -4.10% | 61 | 28.0% |
| Denver | 66.8% | $620,000 | -6.10% | 46 | 27.7% |
| Charlotte, N.C. | 62.4% | $435,000 | 1.20% | 44 | 23.6% |
| Atlanta | 58.0% | $415,000 | -3.50% | 47 | 23.6% |
| Dallas | 50.6% | $444,990 | -4.30% | 49 | 28.4% |
| Phoenix | 50.3% | $515,000 | -4.30% | 57 | 27.3% |
| Raleigh, N.C. | 48.8% | $454,900 | -2.20% | 47 | 21.2% |
| Sacramento, Calif. | 48.5% | $640,000 | -4.80% | 44 | 20.7% |
| San Jose, Calif. | 45.0% | $1,399,000 | -5.10% | 31 | 11.3% |
| Memphis, Tenn. | 44.7% | $339,000 | 5.60% | 59 | 23.3% |
On the other end of the spectrum, New York gained the least inventory, rising 2.1% from August 2023. Above the Big Apple, active listings rose 7.5% in Milwaukee, 9.6% in Hartford, Conn., 11% in Chicago, and 12.9% in Philadelphia.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count - Annual Change | Median Listing Price | Median Listing Price - Annual Change | Median Days on Market | Price-Reduced Share |
| New York | 2.1% | $750,000 | 4.60% | 58 | 8.2% |
| Milwaukee, Wis. | 7.5% | $399,000 | 13.20% | 29 | 14.7% |
| Hartford, Conn. | 9.6% | $415,000 | 3.80% | 33 | 9.7% |
| Chicago | 11.0% | $385,000 | 0.10% | 36 | 14.6% |
| Philadelphia | 12.9% | $382,000 | 9.10% | 44 | 14.1% |
| Cleveland | 13.7% | $269,900 | 8.00% | 38 | 15.7% |
| Detroit | 14.5% | $279,900 | 2.80% | 36 | 15.8% |
| Buffalo, N.Y. | 17.2% | $279,900 | 7.80% | 39 | 9.3% |
| St. Louis | 17.6% | $301,900 | 6.40% | 41 | 15.9% |
| Virginia Beach, Va. | 20.2% | $392,800 | 2.40% | 36 | 20.8% |
| Kansas City, Mo. | 22.7% | $398,050 | -8.50% | 52 | 17.7% |
| Washington, DC | 23.8% | $599,900 | -2.50% | 37 | 13.7% |
| Pittsburgh | 24.1% | $245,000 | -2.00% | 47 | 20.9% |
| Nashville, Tenn. | 25.1% | $550,000 | -5.70% | 38 | 24.6% |
| Minneapolis | 25.5% | $439,990 | -2.80% | 37 | 17.1% |
Additionally, the median time listings spent on the market grew to 53 days, up from 50 days in July and 46 days the year prior. Relatedly, the share of listings with price reductions increased to 19.3%, rising from 18.9% in July and 16.2% in August 2023.
“As the market slows seasonally, fall is one of the best times to buy a house,” Hale said. “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.”
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2024.
If you’re searching to purchase a home, it’s helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
