Active Housing Inventory Grew 7.4% in October as Pending Sales Fell

Active housing inventory climbed 7.4% year-over-year to 183,500 homes in October, marking the fastest annual growth in eight months as buyers retreat from the market while sellers maintain firm pricing stances.

Inventory Rises While Demand Drops

The calculation is as follows. Active listings have grown each month since February, bringing national supply to just 6.6% below typical pre-pandemic levels. But the balance sheet tells a different story on the demand side, as newly pending sales dropped 16.8% in October compared to the previous year, according to Zillow.

That marked the largest annual drop since August 2023. At the same time, new listings fell 7.5% from October 2025.

“The market is cooling on both sides, but in different ways. Buyers are stepping back as higher mortgage rates cut into their buying power, while sellers are listing less often without a broad increase in delistings or price cuts,” said Danielle Hale, chief economist at Realtor.com.

Sellers remain largely unphased by the broader cooling trend. Just over 20% of sellers cut prices in October, matching rates seen in both September and October of last year.

Mortgage Payments Rose Significantly in October

Mortgage rates edged down slightly in October month-to-month. Even so, they remain more than a full percentage point higher than a year ago.

Higher borrowing costs drove the monthly mortgage payment on a typical U.S. home to $2,004 in October, assuming a 20% down payment and excluding taxes and insurance. That figure represents a 12.8% increase from last year and a 4.8% jump from September, marking the largest single-month increase in four years.

Metric	October Value	Year-over-Year Change
Active Inventory	183,500 homes	+7.4%
New Listings	—	-7.5% (vs. Oct 2025)
Newly Pending Sales	—	-16.8%
Typical Monthly Mortgage Payment	$2,004	+12.8%

Outlook for the New Year

“November is shaping up to have an even larger contraction, but the silver lining is that next month is likely going to be the worst of it,” said Mischa Fisher, Zillow’s chief economist, in a release. “I expect the pace of the slowdown to ease into the new year.

There are deals to be had for buyers able to brave the affordability headwinds in the coming months, and the continued inventory buildup means there is a lot of upside for sales into next year if we get rate relief.”

Whether sellers will eventually adjust price expectations as inventory continues to accumulate remains the central question for the housing sector moving into the new year.

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.

More on this story: U.S. Pending Home Sales Hit Record Low as Mortgage Payment Falls to Five-Week Low · 30-Year Fixed Mortgage Rate Falls to One-Month Low of 7.05%