Active listings increased 33.5% on a year-over-year basis in October to their highest level since 2020, according to the Realtor.com Monthly Housing Trends Report. While the supply of for-home sales has improved, other market factors, including high listing prices, are preventing more shoppers from taking advantage of the rise in available inventory. Affordability continues to price out many would-be home shoppers in October.

“As the rapid run-up in rates reshapes housing market dynamics this fall, both buyers and sellers are taking a step back to recalibrate their plans. Home shoppers are looking at a monthly mortgage payment that is roughly $1,000 higher than at this time last year, and incomes are rising but not by that much,” says Danielle Hale, chief economist for Realtor.com. “Combined with asking prices that are still climbing at a double-digit yearly pace, the average American has taken a huge hit to their home buying power.”

Despite the increase in supply of active listings, new sellers declined year-over-year for the fifth consecutive month, according to Realtor.com. Pending listings, or homes under contract with a buyer, also dropped on a year-over-year basis in October. Realtor.com says the accelerated inventory improvements in October were largely due to moderating buyer demand, fueled by higher mortgage costs and ongoing inflation.

Among the 50 largest U.S. metros, 42 markets posted yearly active inventory gains in October, led by Phoenix (+173.9% YOY), Raleigh (+167.4% YOY), and Nashville (+145.0% YOY). All regions experienced decreases in new listings on a year-over-year basis in October, with the largest decreases in the West (-20.6% YOY) and the Northeast (-17.4% YOY). Active inventory was higher in 32 of the 50 largest metros compared with October 2020, led by Western and Southern metros.

Prices on a national basis were relatively unchanged from the previous month in October. The national median listing price fell $2,000 from September to $425,000 in October. Annual home listing price growth decelerated to 13.3% from 13.9% in September. Across the 50 largest U.S. metros, yearly listing price growth entered single digits (+9.2%) in October, according to Realtor.com. The share of homes with price reductions was up 10.3 percentage points to 20.9% in October; Western and Southern metros reported the greatest increases in the share of price reductions. The typical home spent 51 days on the market in October, six days more than 2021 but 20 days faster than the typical 2017-2019 pace, according to Realtor.com.

According to Realtor.com’s Q3 Cross-Market Demand Report, more buyers attempted to search for homes farther from where they live for lower-priced options. According to the report, approximately 60.7% of listings views on Realtor.com came from users located outside of the listing’s metro, compared with 52.1% at the same time last year. Northeastern and Western home shoppers were most likely to search for homes out of market in the third quarter, reflecting the higher median listing prices in both regions relative to other regions in the country.