Homes for sale hit the highest supply in over a decade: why buyers have more leverage
The short answer
In August 2026 there were 1.62 million existing homes for sale, a 4.9-month supply at the current sales pace and the highest months' supply in more than 10 years, according to the National Association of REALTORS. Sales slowed to a 3.98 million annual rate, and the median existing-home price was $429,100, up 1.6% from a year earlier. More supply and slower sales generally give buyers more room to negotiate.
Key numbers
- Homes for sale
- 1.62 million (+5.9% year over year)
- Months of supply
- 4.9
- Existing-home sales
- 3.98 million annual rate
- Median price
- $429,100 (+1.6% year over year)
- First-time buyer share
- 30%
- Median days on market
- 31
What the numbers say
Existing-home sales fell 2.0% from July, the third monthly decline in a row, as higher mortgage rates cooled demand. At the same time, listings kept growing. Months of supply measures how long it would take to sell every listed home at the current pace; 4.9 months is the most since 2015. Economists often describe roughly 4.5 to 6 months as a balanced market.
Prices have not fallen nationally. The median rose 1.6% from a year earlier, a much slower pace than in recent years. Prices and conditions vary widely by region and neighborhood.
How buyers can use this
- Negotiate on more than price. Ask the seller to pay part of your closing costs or fund a rate buydown. A seller-paid 2-1 buydown or permanent buydown can lower your payment more than a small price cut.
- Keep your contingencies. In a slower market there is less pressure to waive inspection or appraisal protections.
- Look at homes that have sat. Listings on the market longer than the local average often have motivated sellers.
What sellers should know
Pricing right from the start matters more when buyers have options. Homes that need work or are priced above recent sales tend to sit.
Common questions
Is it a buyer's market now?
Nationally the market is moving toward balance, not a full buyer's market. Some local markets are already buyer-friendly and others remain tight. Ask a local agent for months of supply in your area.
Will home prices drop?
National prices were still up 1.6% year over year in August 2026. Local prices can fall even when the national median rises.