Home Sales Stall in August as More Sellers Pull Back

As buyer demand weakened in August, sellers also started pulling back. For the home shoppers who remain, there are still plenty of options. However, the strong advantage buyers enjoyed in recent months is beginning to level off.

According to recent data from real estate marketing platform Zillow, the total number of homes for sale in August was 15% higher than the same month last year, but inventory declined by 3% compared with the previous month as fewer new listings came onto the market. At the same time, the number of listings that received a price reduction declined slightly to 26% of listings compared to 27% in July.

Pending-home sales continued to fall in August

Homes put under contract in August dropped by 2.6% from July but were still 4.6% higher than a year ago. Additionally, the median time for a home to move from a listing to a pending sale rose to 27 days in August, which is three days longer than the previous month and seven days longer than in August 2024.

Nationwide figures don’t necessarily paint the full picture

National numbers don’t tell the whole story, with market conditions varying widely by region.

In the South, buyers currently hold the upper hand. Pandemic-era boomtowns—such as Miami, Tampa, Jacksonville, and Austin—have more existing inventory than before the pandemic due to increased home-building efforts.

Meanwhile, the Northeast and the San Francisco Bay Area continue to favor sellers. Buffalo, Hartford, San Francisco, San Jose, and Boston are the most competitive for buyers. In these cities, supply remains below pre-pandemic levels, giving sellers the upper hand.

Sellers might be pulling back now, but the market has largely favored buyers over the past year 

• More Affordable Homes on the Market Means a Temporary Reprieve for Buyers: In addition to increased for-sale inventory, mortgage rates hit a two-year low in September 2024, making more homes even more accessible to buyers at that time. 
• Homebuying Demand Picks Up in the Last Leg of 2024: At the end of 2024, homebuying demand grew by 7%.