July 2026 Existing Home Inventory: Why Months of Supply Held

July 2026 existing home inventory ended the month at 1.54 million, down 1.9% from June and 0.6% from July 2025. Months of supply held at 4.6, unchanged from both comparison periods, according to the National Association of Realtors’ August 11, 2026 release. Sales also fell from June, offsetting the effect of lower inventory on the ratio. The steady supply reading masks two declines.

Why months of supply stayed flat

NAR reported July sales of 4.06 million at a seasonally adjusted annual rate, down 1.7% from June and up 0.7% from a year earlier.

Months of supply divides the inventory stock by the monthly sales pace. Using the release’s rounded figures:

1.54 million ÷ (4.06 million ÷ 12) = approximately 4.55 months, which rounds to 4.6.

The division by 12 matters. The annual sales rate expresses a month’s seasonally adjusted pace over a full year; it is neither the number of July closings nor a forecast of annual sales. NAR’s methodology explains that conversion.

A smaller inventory pushes months of supply down, while slower sales push it up. When both fall at similar rates, those effects largely offset. Reporting to one decimal place can also conceal small movements in the underlying ratio.

Consider a hypothetical market with 150 homes in inventory and 30 sales a month. It has five months of supply. If sales slow to 25 a month while inventory stays at 150, supply rises to six months without one additional home becoming available. If inventory also falls to 125, the ratio returns to five months—even though buyers have fewer homes to consider and brokers have fewer transactions.

An inventory report therefore needs to show the stock and sales pace alongside their ratio. Our inventory data reports follow those measures across releases.

Regional sales moved in different directions

The national monthly sales decline was not shared by every region:

Source: NAR’s August 11 regional results.

The Midwest’s monthly decline alongside annual growth also shows why the comparison period matters. A setback from June can coexist with sales above the previous July’s level.

These are sales comparisons. Without matching regional inventory, they cannot establish whether supply became more plentiful relative to demand in each region. Nor does a regional result establish conditions for a particular property type or price band. For a narrower geographic comparison, see our Boston July inventory report.

Why unsold inventory and active listings can diverge

NAR’s inventory includes active listings and properties with pending sales, according to the NAR series notes published by FRED. Some homes in that stock are therefore already under contract.

Realtor.com’s active-listing measure excludes pending listings where pending status is available. Its monthly count represents the active listings expected on a typical day during the month, rather than strictly the last day.

Those distinctions matter for July. In its July report, published August 3, Realtor.com counted 1,126,252 active listings, up 2.1% from both June and a year earlier. Its series increased while NAR’s inventory declined.

A hypothetical home moving from active to pending illustrates one reason the measures can behave differently: it can leave an active-only count while remaining in an inventory measure that includes pending sales. Measurement dates create another possible source of divergence. A weekly observation and a month-end snapshot need not capture the same listings.

Coverage also differs. Realtor.com’s July methodology says its listing population can include new construction supplied through participating multiple listing services. NAR’s existing-home sales series covers previously owned and occupied homes. The populations overlap, but the counts are not interchangeable.

Keep adjustments and release dates consistent

NAR’s inventory count is not seasonally adjusted, whereas its headline sales pace is. The supply ratio therefore retains seasonal influences through inventory; adjusting the sales denominator does not remove them from the stock.

NAR is both the data producer and a real estate industry association. Its estimates use a representative sample of local boards and multiple listing services, with sales weighted to represent regional activity. NAR’s methodology also allows for seasonal-factor revisions that can change historical sales rates and months of supply. This article retains the August 11 release figures and comparisons.

Test the national signal against local evidence

For a listing presentation or acquisition review, compare housing supply and sales measures within the subject property’s geography, property type and price range. Examine active inventory, pending activity, completed sales, price reductions and concessions over consistent periods.

A higher supply ratio caused by slower sales calls for examining whether buyers are completing transactions. One caused by more listings calls for examining the additional competition sellers face. Neither establishes an appropriate discount or concession on its own. Before recommending terms, identify which part of the local ratio changed and whether comparable properties support the recommendation.