Within just the past 4 months, the housing inventory has doubled. In April the inventory was less than one month supply at 0.8. As of August 1st, the inventory has doubled to 1.7 month supply and growing. Historically speaking a "balanced or normal" market is 3 month supply.
What does this mean? Buyers have stepped back because of rising interest rates and home values soared out of control. Fewer buyers means it's taking longer for homes to sell and therefore inventory starts to climb.