U.S. new home listings surge 2.6% in August, highest since 2022

U.S. new home listings climbed 2.6% month-over-month in August, marking the highest level since 2022, according to a press release from Redfin. The uptick reflects broader market dynamics, with regional variations highlighting both strong demand in certain areas and persistent challenges in others. Median home sale prices rose 2.2% year over year to $398,596 in August, though mortgage rates—averaging 6.67%—remained elevated, hitting their highest level in over a year. Meanwhile, pending sales grew modestly by 0.1%, while closed sales declined 0.5%, the first drop in over a year. About 59.5% of homes sold below their asking price, with West Palm Beach leading at 85% and San Francisco the lowest at 30%. Active listings surged 3.9% from July, reaching the highest level since 2020, though year-over-year growth varied widely: Seattle saw a 24.2% increase, while Jacksonville experienced a 15.9% decline. San Jose led new listings with a 25.5% year-over-year rise, followed by Nashville (15.8%) and Seattle (13.7%). Regional home sales showed mixed trends: San Francisco’s year-over-year increase of 9.5% contrasted with Houston’s steepest decline at 10.4%, and Detroit’s 9% drop. Redfin’s head of economics research, Chen Zhao, noted that the rise in listings allows buyers greater leverage in negotiations, though elevated mortgage costs and price pressures persist as key constraints on affordability.