The national sales-to-new listings ratio reached 53 percent in August, slightly above July’s 52.9 percent. This ratio has stayed relatively constant since April, with a long-term average of 55 percent. A ratio between 45 and 65 percent generally indicates balanced market conditions.
James Mabey, chair of CREA, noted, “With more interest rate cuts now expected between now and next summer, the stage is set for a faster return of demand, but we’re clearly not there just yet.” He emphasized that new supply typically peaks during April, May, June, and September.
“The first week of September saw not only a third rate cut, but also a lot of new properties for buyers to consider,” Mabey said. He encouraged those considering buying or selling this fall to contact a REALTOR® for guidance.
The inventory of homes remained stable, with 4.1 months of inventory by the end of August, compared to 4.2 months in July. This figure has remained between 3.8 and 4.2 months since last October, while the long-term average is closer to five months.
The non-seasonally adjusted National Composite MLS HPI was down 3.9 percent compared to August 2023, mostly due to price gains from earlier in the year followed by declines in the latter half of 2023. Year-over-year comparisons are expected to improve in the coming months.