Inventory is the number of homes for sale. Months’ supply turns that into time: how long it would take to sell every listed home at the current sales pace.
What the number tells you
Economists often treat about four and a half to six months of supply as a balanced market. Below that, sellers usually hold the upper hand and prices rise faster. Above it, buyers gain leverage.
Where we are
In August 2026 there were 1.62 million existing homes for sale, a 4.9-month supply and the highest in more than a decade. New homes are more plentiful still, at 8.5 months.
Watch the mix
Inventory can rise for good or bad reasons. More new listings mean more choice. Homes sitting unsold for longer, with more price cuts, point to weaker demand. In autumn 2026 it is mostly the second.
Sources
- NAR, Existing-Home Sales, August 2026
- Census Bureau, New Residential Sales, August 2026
- NAHB Eye on Housing, existing home sales
This is information, not a recommendation to buy, sell or borrow. Read our investment disclaimer.
