US Existing-Home Listings Rise to Four-Year High in August

Redfin reported that new listings of US homes for sale rose 2.6% in August, reaching their highest level in more than four years.

Redfin attributed the increase to more homeowners listing their properties as the mortgage-rate lock-in effect fades, life circumstances prompt moves, and sellers adjust to a slower housing market.

Homebuying demand remained relatively flat. Pending home sales rose 0.1% from July, leaving them only slightly above July’s one-year low, while closed home sales fell 0.5% to their lowest level in more than a year.

The median US home-sale price rose 2.2% year-over-year to $398,596, the highest August level on record. The average mortgage rate for the month increased to 6.67%, its highest level in more than a year.

In remarks accompanying the report, Redfin Head of Economic Research Chen Zhao said:

“Even though housing is still expensive, the good news for homebuyers is that most other market forces are tilting in their favor. More listings mean buyers can take their time, compare homes, and negotiate instead of feeling pressured to jump on the first decent property they see. In many parts of the country, buyers may be able to negotiate on price, repairs, or closing costs—and walk away if the numbers don’t work. That doesn’t make a home within reach for everyone, but for people who can afford to buy now, it’s a much friendlier market than it was a few years ago.”