Fresh supply is entering the market as summer fades, but pending home sales have slipped to their weakest point since March amid elevated mortgage rates and economic uncertainty.
Source: Original report
Supply Edges Higher While Buyers Pull Back
New home listings across the United States rose 1.2% week over week during the four weeks ending August 16, reaching their highest level in more than three months, according to a Redfin report released August 20, 2026. The supply uptick is arriving at an awkward moment: buyer activity is cooling simultaneously, with pending home sales dropping 1.3% week over week to their lowest reading since March.
The combination of hesitant buyers and more motivated sellers is reshaping the balance of negotiating power in many local markets. With roughly half a million more sellers than buyers currently active, some owners are growing willing to accept offers below their initial asking price or sweeten deals with concessions.
What's Keeping Buyers on the Sidelines
Two headwinds are dominating buyer sentiment. First, the weekly average mortgage rate has climbed to 6.67%, placing it just below a 13-month high. Second, the median home-sale price has increased 1.8% year over year, keeping affordability stretched for many households. Economic uncertainty is amplifying that reluctance, making would-be buyers cautious about committing to a large purchase.
There is one modest silver lining: the median asking price dipped 0.1% — a small number, but notable as the first such decline since January. Redfin economists suggest buyers who find a listing that meets their needs may have more room to negotiate than they have had in recent months.
Why More Sellers Are Listing Now
Several factors are drawing sellers back into the market after a period of hesitation:
- Adjusted expectations: Some homeowners who delayed listing in spring, hoping for a stronger market, have recalibrated. They are accepting that a longer selling timeline and slightly softer price may be the reality for now.
- Life changes: Retirements, job relocations and growing families continue to drive listings regardless of market conditions, according to Jamie Derouen, a Redfin Premier agent based in the Houston area.
- Rate-wait fatigue: Owners who held out expecting mortgage rates to fall sharply are concluding that a meaningful rate drop is unlikely in the near term and are choosing to move forward.
Certain regional markets are bucking the cautious national trend. Areas such as the San Francisco Bay Area and South Florida are reportedly seeing stronger buyer competition, giving sellers in those locations added confidence to list.
What This Means for Buyers and Sellers
For buyers, the current environment offers more options and potentially more leverage than earlier in the year. Redfin economists note that the surplus of sellers relative to buyers means deal-making is more feasible, particularly for properties that have been sitting on the market.
For sellers, the window may still be favorable in competitive submarkets, but those in slower areas should be prepared for longer days on market and price negotiations. Setting realistic expectations from the outset is likely to lead to a smoother transaction.
Among the 50 most populous U.S. metros tracked by Redfin, Virginia Beach, VA posted a notable 12.9% change in its tracked metric, while Montgomery County, PA recorded a 3.6% shift. Full metro-level data and charts are available in the complete Redfin report.
