New Listings Surge as Housing Supply Hits Six-Year Peak

In August, new listings of homes for sale in the U.S. increased by an estimated 2.6% month-over-month, reaching their highest level in over four years, as reported by Redfin, the real estate brokerage associated with Rocket. This increase in fresh supply was primarily driven by San Jose, CA, where listings surged by 25.5% year-over-year, followed by Nashville, TN, at 15.8% and Seattle, WA, at 13.7%.

The rise in listings is attributed to more U.S. homeowners entering the market as the mortgage-rate lock-in effect diminishes, life changes necessitate relocations, and sellers adapt to a more sluggish market.

The top five metros with the biggest increases in new listings:

1. San Jose, CA (25.5%)
2. Nashville, TN (15.8%)
3. Seattle, WA (13.7%)
4. Boston (13.6%)
5. Warren, MI (12%)

Overall, new listings fell most in Dallas (-7.4%), Fort Worth, Texas (-6.8%) and Indianapolis (-4.5%).

This increase in new listings is contributing to a broader overall supply: the total number of homes available for sale rose by 3.9% from the previous month, marking the highest level since 2020. Seattle is a significant contributor to this increase, with active listings rising by 24.2% year-over-year in August, the largest increase in the nation. Following Seattle are Boston, with an 18.7% rise, and San Jose at 17.7%.

San Jose, Nashville, and Seattle each have unique factors driving the increase in local listings. According to Redfin economists, homeowners in San Jose may be looking to capitalize on the renewed interest in the Bay Area, spurred by the AI boom. This is occurring even as home prices in San Jose remain lower than those in nearby San Francisco: the median sale price in San Jose decreased by 2% year-over-year in August to $1.5 million, while San Francisco’s median sale price increased by 7.5% to $1.6 million.

Nashville is recognized as one of the strongest buyer’s markets in the country, with years of home construction providing ample options for house hunters; Redfin agents report that buyers are taking their time to explore the available homes for sale. Additionally, some current homeowners are listing their properties, motivated by the favorable buyer’s market, in anticipation of potential price declines, as noted by local agents.

Seattle’s rise in new listings can be attributed in part to sellers who delayed their sales last summer when buyer demand was low and are now deciding to test the waters, despite ongoing sluggish demand. New listings have been on the rise over the past two years, but the year-over-year growth is particularly pronounced now due to a decline in listings during the summer of 2025. Concurrently, homes in Seattle are taking longer to sell: Prices have fallen by 5.3% year-over-year to $797,192, pending sales have decreased by 14.2%, and Redfin agents report that job uncertainty in the tech sector is making buyers more hesitant. This mix of more sellers and fewer buyers is contributing to an accumulation of overall inventory in Seattle.

Additional Metro-Level Highlights:

• Prices: Median sale prices rose most from a year earlier in West Palm Beach, FL (8.6%), Milwaukee (7.8%) and San Francisco (7.5%). They fell most in Austin, Texas (-6.3%), Seattle, WA (-5.3%), and Fort Worth, Texas (-2.6%).
• Pending home sales: Pending sales rose most in Milwaukee (6.5%), Virginia Beach, VA (5.2%) and Cincinnati (5.1%). They fell most in Seattle (-14.2%), Denver (-13.5%) and Houston (-11.5%).
• Closed home sales: Home sales rose most in San Francisco (9.5%), Newark, NJ (8.3%) and New York (5.4%). They fell most in Houston (-10.4%), Detroit (-9%) and Seattle (-8%).
• Active listings: Active listings rose most in Seattle (24.2%), Boston (18.7%) and San Jose, CA (17.7%). They fell most in Jacksonville, FL (-15.9%), Miami (-14.3%) and West Palm Beach (-14.1%).

Note: All statistics in this report are seasonally adjusted, with the exception of median sale price and mortgage rate data.

Where Demand is Rising & Falling

In terms of purchasing activity, pending home sales remained virtually unchanged, increasing by only 0.1% from the previous month in August. This slight uptick brought the total number of pending sales marginally above the one-year low recorded in July. Conversely, closed home sales, which serve as a more delayed measure of demand, decreased by 0.5% month-over-month, reaching their lowest point in over a year.

The stagnation in homebuying demand can be attributed primarily to persistently high housing costs, which have deterred potential buyers from entering the market. The median sale price of homes in the U.S. increased by 2.2% year-over-year, reaching $398,596, marking the highest level recorded for August. Additionally, the average monthly mortgage rate surged to 6.67%, the highest it has been in more than a year.

“Even though housing is still expensive, the good news for homebuyers is that most other market forces are tilting in their favor,” said Chen Zhao, Head of Economics Research at Redfin. “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.”

Not all metro areas exhibit the same level of demand for homebuying; some regions experience robust demand while others show a decline. This disparity contributes to the stagnation of sales on a national scale. In San Francisco, home sales experienced the most significant increase, rising by 9.5% year-over-year. The housing market in San Francisco is exceptionally vibrant, fueled by an influx of wealth generated from AI, which is predominantly located within the city. Following San Francisco, the next largest increases were observed in Newark, NJ (8.3%) and New York (5.4%), both of which are generally strong markets due to their closeness to a major employment hub.

Conversely, the most considerable declines in home sales were recorded in Houston (-10.4% year-over-year), Detroit (-9%), and Seattle, WA (-8%). A recent analysis by Redfin highlighted the stark contrast between Seattle’s sluggish housing market and San Francisco’s thriving one: despite both cities being significant tech centers, San Francisco is experiencing a resurgence due to the concentration of AI wealth, whereas tech workers in Seattle are facing job uncertainties. Redfin Premier agent Sheryl Wingate noted that layoffs in the tech sector are negatively impacting homebuying demand throughout the greater Seattle area.

How Buyers Are Faring

Additionally, sluggish sales are enabling numerous buyers to secure better deals. In August, 59.5% of homes sold in the U.S. were below their initial asking price, a figure that has remained consistent for the past eighteen months.

In West Palm Beach, FL, an impressive 85% of homes were sold for less than the asking price, marking the highest percentage in the nation. This is followed closely by Miami at 83%, and three metro areas in Texas: Austin, (82%), San Antonio (82%), and Dallas (79%).

These locations represent some of the most prominent buyer’s markets across the country. Years of construction have resulted in Texas having an abundance of inventory, while in West Palm Beach and Miami, the luxury home segment significantly influences the market—many high-end properties are sold below their asking prices, despite their final sale prices remaining elevated.

Conversely, the situation is markedly different in competitive markets. In San Francisco, only 30% of homes sold in August were below the asking price, the lowest percentage nationwide. Following San Francisco are Newark, NJ (33%), San Jose (38%), Oakland, CA (41%), and Montgomery County, PA (44%). In both Newark and Montgomery County, a limited supply has sustained a relatively strong competitive environment. In the Bay Area, wealth driven by AI and high demand continues to keep homes competitive, particularly in San Francisco.

August 2026 Housing Market Highlights (U.S.):

Metric	August 2026	MoM change	YoY change
Median sale price	$398,596	n/a	2.2%
Existing-home sales, seasonally adjusted annual rate	4,262,396	-0.6%	-0.1%
Pending home sales	336,973	0.1%	-1.3%
Homes sold	291,769	-0.5%	-0.4%
New listings	393,178	2.6%	4.3%
Total homes for sale (active listings)	1,534,918	3.9%	2.7%
Months of supply	3.9	unchanged	0.1
Median days on market	50	unchanged	unchanged
Share of homes that sold below original list price	59.5%	-0.5 ppts	-1.6 ppts
Average sale-to-original-list-price ratio	96.4%	0.1 ppt	0.3 ppts
Pending sales that fell out of contract, as % of overall pending sales	13.9%	-0.1 ppts	0.6 ppts
Monthly average 30-year fixed mortgage rate	6.67%	0.12 ppts	0.08 ppts

To read the full report, click here.