SEATTLE – New listings of U.S. homes for sale rose 2.6% month-over-month to their highest level in over four years in August, according to a new report from Redfin, the real estate brokerage powered by Rocket.

More U.S. homeowners are listing as the mortgage-rate lock-in effect fades, life circumstances prompt moves and sellers adjust to a slower market.

The jump in new listings is contributing to a widening pool of overall supply. The total number of homes for sale rose 3.9% from a month earlier to its highest level since 2020, according to the report.

On the buying side, pending home sales were essentially flat (0.1%) from a month earlier. That brought the number of pending sales just slightly above July’s 1-year low. Closed home sales, a more lagging indicator of demand, fell 0.5% month-over-month to their lowest level in over a year.

Homebuying demand is stagnant largely because housing costs are stubbornly high, pushing would-be buyers to the sidelines, according to the report. The median U.S. home-sale price rose 2.2% year-over-year to $398,596, the highest August level on record. The monthly average mortgage rate jumped to 6.67%, the highest level in over 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 for 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 every metro area is equal when it comes to homebuying demand; it’s strong in some parts of the country and weaker in others. That’s part of the reason why sales are stagnant nationally, according to the report.

Slow sales are allowing many of the buyers who are out there to get deals, with 3 in 5 (59.5%) U.S. homes selling below their original asking price in August. That share has held steady for the past year and a half.

The full report can be viewed HERE.