US Home Sales Fall Below 4 Million as Rising Rates Push More Homes Into Inventory

United States | September 11, 2026: The US existing-home market weakened again in August as higher mortgage rates pushed annualized sales below the 4 million mark, while the number of homes available for sale climbed to its highest level in years.

Existing-home sales fell 2% from July to a seasonally adjusted annual rate of 3.98 million, according to the National Association of Realtors. Sales were also 1.2% below August 2025, although transactions for the first eight months of 2026 remained 1.6% above the same period last year.

More Homes Are Giving Buyers More Choice

Inventory increased to 1.62 million homes, taking available supply to 4.9 months. The higher inventory is gradually shifting negotiating power toward buyers, particularly in markets where listings are taking longer to sell.

For homebuyers, the change means more properties to compare and potentially greater scope to negotiate prices, repairs and seller concessions.

Mortgage Rates Continue to Hold Back Demand

The biggest obstacle remains borrowing costs. Even with more properties available, elevated mortgage rates are keeping monthly payments high and discouraging some households from entering the market.

That has created an unusual situation where buyers have more choice but are not necessarily buying at a faster pace.

 

Regional Markets Show Different Conditions

The Northeast recorded the sharpest monthly decline, with existing-home sales falling 4% to 480,000 units. The Midwest dropped 3.1% to 940,000, while the South declined 1.6% to 1.84 million.

Sales in the West remained unchanged at an annual rate of 720,000, although the region was still down 2.7% from a year earlier.

What This Means for Property Buyers and Sellers

For buyers, the current market offers a stronger position than during the supply-constrained years when sellers had greater pricing power. Buyers who can comfortably manage current mortgage rates may find opportunities to negotiate as inventory expands.

Sellers face a tougher environment. Pricing a property correctly and offering competitive terms could become increasingly important as buyers gain more alternatives.

The next major signal will be whether inventory continues rising while mortgage rates remain elevated. If that happens, the US housing market could move further toward buyer-friendly conditions. NAR has previously noted that rising mortgage rates remain a key short-term affordability challenge even when incomes are improving.