U.S. housing market faces dual pullback as new listings hit three-month low

The American housing market is experiencing a simultaneous retreat by both buyers and sellers. New home listings have declined, reaching their lowest level since July, according to Redfin data for the four weeks ending October 18, 2026.

Homeowners are increasingly hesitant to list properties due to the “golden handcuffs” effect. Many are reluctant to trade low-interest mortgages from the 2020-2021 period for current rates, which have held steady at a weekly average of 7.4%. This trend is compounded by flat home prices, with the median U.S. home-sale price rising only 0.2% year-over-year to $390,614.

In response to these conditions, homebuyers are looking for ways to mitigate costs. Strategies include negotiating for closing cost assistance, requesting mortgage rate buydowns to lower monthly payments, and scrutinizing listing histories to identify properties with significant room for negotiation.