In some cities, the increase in home listings is over 60%.

• In August 2021, there was a 36% increase in active listings nationwide compared to the same month in 2020, according to a report from Realtor.com.
• Due to the increase in the time homes are staying on the market, there has been an increase in supply.
• In many cities, supply is growing, but Tampa, Florida, and San Diego are experiencing particularly significant increases.

The number of homes available for purchase is increasing rapidly, although it remains below historical averages.

In August 2021, there was a 36% increase in active listings nationwide compared to the same month in 2020, according to a report from Realtor.com. This marks the 10th consecutive month of annual growth. Despite this, supply remains 26% lower than in August 2019, before the pandemic.

With the increase in inventory, sellers are becoming more cautious about listing their properties. In August, there was a decrease in new listings (-1%) compared to the previous year. The increase in supply can be attributed to the longer time homes are spending on the market.

"Danielle Hale, chief economist at Realtor.com, stated in a release that as the number of homes on the market increases, price cuts are becoming more frequent, asking prices are decreasing, and homes are taking longer to sell. Although the widely anticipated Fed rate cut has already resulted in lower mortgage rates, some buyers and sellers are delaying their decisions until additional declines occur."

Despite a 75 basis point decrease in the average rate on the 30-year fixed mortgage, weekly mortgage data shows that applications for loans to buy a home are down about 4% compared to the same time last year.

In some cities, such as Tampa, Florida, inventory has increased by more than 90% compared to the previous year. Similarly, San Diego, Miami, Seattle, and Denver have also experienced significant gains in their inventory levels, with increases of 80%, 72%, 69%, and 67%, respectively.

In the South, there was a 46% increase in active listings, while in the West, there was a 35.7% increase. The Midwest saw a 23.8% rise, and the Northeast experienced a 15.1% increase in active listings.

An increase of seven days from a year ago, the typical home in August spent 53 days on the market, which is the slowest August pace in five years due to more supply.

"According to Ralph McLaughlin, senior economist at Realtor.com, the market slows by approximately one day for every 5.5 percentage point increase in the year-over-year number of active listings. With the current rapid growth in inventory, this can result in changes of up to 15-20 more days on the market compared to the previous year in some markets."

Lower prices are finally emerging due to the increase in supply and longer selling times, as evidenced by the 3% rise in the share of homes with price reductions in August. The median list price decreased by 1.3% year over year. This can be attributed to the mix of homes on the market, with more smaller homes being listed. Despite this, prices remain 36% higher than August 2019.