More homes are on the market, but not enough to meet pre-pandemic norms — and prices may soon fall year-over-year

Housing prices are under pressure as months-of-inventory for existing homes rises above pre-pandemic levels, driven by increasing supply and sluggish sales. A year-over-year decline in prices may occur in 2026. Active listings were up 8.1% year-over-year in March 2026, according to Realtor.com, while new listings rose 0.7%. The growth in active listings has slowed recently, and nationwide inventory remains 13.8% below typical 20172019 levels. Despite the uptick in supply, there will likely be no wave of distressed sales, as most homeowners hold substantial equity and benefit from low mortgage rates. Regional differences persist: the Northeast is seeing smaller inventory increases and rising prices, while other areas face larger inventories and price declines. Homebuilders are also under pressure, with many reducing prices to compete against elevated existing home inventory.