What's behind the summer housing slowdown?
As the summer homebuying season nears its end, prospective buyers are seeing more options on the market, though prices remain largely unchanged. The latest Weekly Housing Market Update from Realtor.com shows new listings on the rise, even as affordability challenges keep many shoppers on the sidelines.
For the week ending August 9, the number of fresh listings—properties newly put up for sale—climbed 6.4% year over year, according to Realtor.com senior economic research analyst Hannah Jones. This marks an improvement from the 1.7% increase recorded the previous week.
“This marks a pick up compared to the previous week, though the number of new listings remains below the spring and early summer norm,” Jones said.
Overall housing inventory also expanded, with the total number of homes for sale up 22.1% from a year earlier. Although this represents a slight slowdown from the week before, it still marks the 92nd consecutive week of annual inventory gains, with roughly 1.1 million homes available.
Jones noted that active inventory is growing faster than new listings, a sign that more homes are lingering on the market. Many homeowners remain hesitant to list, wary of the slower pace of sales and persistent affordability concerns among buyers.
Prices hold steady
Despite the boost in listings, the median list price last week was unchanged compared to the same period in 2024. By contrast, the week ending Aug. 2 saw a 0.8% year-over-year price increase.
Price per square foot—which adjusts for variations in home size—ticked up 0.4% from last year, extending a nearly two-year streak of annual growth.
“Price per square foot growth is outpacing overall price growth, suggesting that underlying home values are stable,” Jones said.
The typical home spent six days longer on the market than a year ago, matching the figure from the previous week. According to Jones, the summer slowdown reflects a combination of high housing costs and broader economic uncertainty that continues to discourage potential buyers.
Mortgage rates and buyer sentiment
Lower borrowing costs may help ease some of those concerns. Mortgage rates have been trending downward, reaching a 10-month low of 6.58% on Aug. 14, compared with 6.63% the week before. This decline comes despite recent inflation data showing less progress on price growth than expected.
Meanwhile, Fannie Mae’s Home Purchase Sentiment Index showed improvement in July, hinting that more buyers could return if more affordable homes become available.
Sellers adjust strategies
With fewer buyers making offers, more sellers are reconsidering their plans. Jones said many are lowering prices or pulling their listings altogether. This summer has seen an uptick in both price reductions and delistings, reflecting shifting seller tactics.
“The pace of home sales has been sluggish this summer as still-high housing costs and general economic uncertainty deterred would-be buyers,” Jones said.
The report suggests that while inventory growth is offering more choice, it has yet to translate into lower overall prices—leaving the late-summer housing market at a standstill.
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