The number of homes newly listed on the market jumped 11.6% in September when compared to the same month a year ago, according to a new report from Realtor.com.

Falling mortgage rates and the recent 50 basis-point rate cut from the Federal Reserve were the main reasons why housing inventory reached the highest level in three years, said Ralph McLaughlin, Realtor.com’s economist.

The last few years have been marked by what Realtor.com describes as the locked-in market, in which many homeowners with low interest rates on their mortgages were reluctant to sell in a market with high interest rates. But that has begun to change as interest rates fall, making buyers and sellers feel more confident.

“We find that the lock-in effect is easing,” McLaughlin said. “It’s likely that some sidelined buyers are coming back onto the field as both their buying power and home choices increase.”

The report found that 34% more homes were for sale on a typical September day this year compared with last year. In fact, September saw the highest number of active listings since April 2020. Most of the fresh listings, McLaughlin explains, are happening in the more expensive markets where the nominal savings from lower mortgage rates are the highest.

The increase in listings was seen in every region of the country, with new listings rising 42% in the South, 36.5% in the West, 22.3% in the Midwest and 14.8% in the Northeast. Some of the largest increases were seen in Florida. Tampa saw a 74% jump from a year ago, followed by Miami which rose nearly 68% and Jacksonville which climbed nearly 62%.

Realtor.com also found that median home prices fell in September by nearly $5,000 from the month before to $425,000. Some of the cities with the steepest median price drops included Miami, which saw home prices fall 12.4%. It was followed by Cincinnati (-9.5%) and San Francisco (-8.9%).