US Home Inventory Rises as Pending Sales Plummet

Active home inventory in the United States rose 7.4% year-over-year to 183,500 homes in October, the fastest annual growth in eight months. Despite this buildup, new listings fell 7.5% compared to October 2025, and only 20% of sellers reduced their asking prices.

Zillow and Realtor.com report that high mortgage rates, which remain over a full percentage point higher than last year, have caused a 16.8% year-over-year drop in newly pending sales. This represents the steepest annual decline since August 2023. Home prices continued to climb, pushing the typical monthly mortgage payment up 12.8% from last year to $2,004.

Economists note that the market is cooling for both buyers and sellers, though owners with homes already on the market appear largely unphased. While a further contraction is expected in November, analysts suggest the continued inventory buildup could support a sales recovery in the coming year if mortgage rates decrease.