U.S. new home listings reach highest level since 2022

In August, the number of new home listings in the United States surged to a four-year high, up 2.6% month-over-month, according to Redfin. San Jose, California saw the largest jump in listings, increasing 25.5% year-over-year, followed by Nashville with a 15.8% increase and Seattle with a 13.7% rise. The total inventory of homes for sale grew 3.9% from the previous month, reaching the highest level since 2020.

The median home sale price climbed 2.2% year-over-year to $398,596. Although pending home sales remained essentially flat, closed home sales declined 0.5% to their lowest level in over a year. Three-fifths of homes sold for less than the original asking price, with West Palm Beach leading at 85% and Miami at 83%. San Francisco had the lowest percentage at 30%.

Mortgage rates for 30-year fixed-rate loans increased to 6.67%, the highest in over a year. Regional variations were evident, with San Francisco seeing a 9.5% year-over-year increase in home sales, while Houston experienced the biggest decline at 10.4%. Active listings rose most in Seattle (24.2%), Boston (18.7%), and San Jose (17.7%), while Jacksonville, Florida saw the most significant drop in active listings at 15.9%.

Chen Zhao, Redfin's head of economics research, noted that more listings allow buyers to have more negotiating power without feeling rushed.