Inventory has been rising steadily over the past year, up 29% in June compared with the same month last year. The gains, however, began slowing this past spring. The average rate on the 30-year fixed mortgage has hovered in the high 6% range for most of this year, double what it was during the early days of the pandemic, when home prices initially took off.

“There are two competing forces in the housing market right now,” said Andy Walden, head of mortgage and housing market research at ICE. “Increasing inventory levels are helping to make homes more affordable, but prices are falling in an increasing number of markets and homes are taking longer to sell, which could make homeowners reluctant to list.”

Regionally, prices are still seeing big gains in the Northeast and Midwest. They are softening in the South and West. Cape Coral, Florida, saw the biggest decline, with prices down just over 9%. Austin, Texas, and Tampa, Florida, are also seeing price declines, as are seven of the 10 major markets in California.