The U.S. housing market is entering the fall season with an uptick in available inventory—the highest level since May 2020.
According to the Realtor.com® August Housing Trends Report, the number of homes actively for sale increased by 35.8% year-over-year, marking the tenth consecutive month of inventory growth. However, even with more homes available, new listings fell slightly by 0.9%, suggesting a pullback from sellers.
Rising Housing Inventory Levels
Active inventory levels grew 35.8% compared to August 2023, marking the highest count of homes for sale since May 2020.
The inventory growth in August was welcomed by all, but it’s a slight deceleration from July’s 36.6% year-over-year increase. And inventory isn’t back to pre-pandemic norms just yet—inventory is still 26.4% lower than in August 2019 nationwide.
The market is also seeing growth in affordable housing options—which has been a major challenge for buyers across the country. Inventory in the $200,000 to $350,000 price range grew by 46.1% year-over-year, driven by more affordable homes in the South.
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8 States with Increases in Inventory, Compared to August 2019
Even though nationwide inventory levels remain lower than 2019, when the data is broken down by state, there are varying levels of growth. In August, there were eight states with more single-family inventory than pre-pandemic, according the Altos Research.
- Oklahoma (+19.8%)
- Texas (+18.9%)
- Idaho (+17.1%)
- Florida (+8.6%)
- Arkansas (+4.2%)
- Alabama (+1.6%)
- Tennessee (+0.9%)
- Utah (+0.5%)
On the other end of the spectrum, states in the Northeast and Midwest continue to see significantly less inventory than in 2019, including Connecticut (-74.5%), Illinois (-73.4%), Massachusetts (-59.3%) and New York (-57.2%).
“The inventory scars of the pandemic-era housing market are continuing to fade. Although active listings are still short of the pre-pandemic mark, we saw the gap continue to narrow meaningfully as active listings hit a post-pandemic high. As sellers continue to list homes and buyers become choosier, the time a home spends on the market is extending, thereby helping the housing market move in a more buyer-friendly direction. In response, sellers are curbing expectations and reducing listing prices more often which could set the stage for more sales this fall, especially if mortgage rates continue to decline.”
Rise in Price Reductions and Days on Market
The percentage of homes with price reductions increased to 19.2% in August, a 3.1% increase from the same month last year. The share of price reductions rose in all regions, led by the West (+3.5% YoY), followed by the Midwest (+3.3%), the South (+2.8%), and the Northeast (+2.0%).
“In addition to seeing inventory levels rise to heights not seen since before the pandemic, buyers are also seeing sellers cut prices on a much larger share of homes than last year. These are signs that the housing market is healing from an unhealthy state and becoming more balanced.”
Along with an increase in price reductions, homes aren’t selling as quickly. Homes spent an average of 53 days on the market in August 2024, an increase of seven days from 2023, making it the slowest August in five years.
The report suggests that while the housing market is seeing increased inventory and price reductions, there is still a seasonal slowdown in activity. The current trajectory indicates that the market may remain less competitive than in spring 2025, as more potential buyers wait for anticipated lower mortgage rates.
For the full analysis, head to Realtor.com’s August 2024 Monthly Housing Market Trends Report.
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