National home prices rose 2.2 percent year over year to a median of $398,596, while the number of homes on the market increased 2.7 percent. This modest gain in listings gives buyers slightly more inventory to choose from, even as prices hold steady.

Mortgage applications from prospective homebuyers dropped 19 percent compared to this time last year following higher borrowing costs. Slower buyer competition can create opportunities to negotiate with sellers, although financing costs remain elevated.

New home construction slipped 2.6 percent in August to an annualized pace of 1.275 million units. A slower construction pace means fewer brand-new properties reaching the market, keeping total housing supplies relatively limited.