Home Sales Increased Slightly in July but Remain Low
- Existing home sales increased by 0.6% in July.
- However, sales were at the lowest July level on record.
- This slight rise in sales indicates a continuing trend of low home sales.
According to a recent report from Redfin, pending home sales in July reached their lowest level since records began in 2012, with only April 2020 seeing a lower figure due to the pandemic's impact on the housing market. Despite a drop in mortgage rates during July and further declines in August, which typically enhance buyers' purchasing power, the response from potential homebuyers has been tepid. The report highlights a significant increase in the total supply of homes for sale, which rose by 13.7% year-over-year in July. Homes that went under contract took an average of 34 days to sell, marking the longest duration for any July since 2020, compared to 29 days the previous year. While new listings saw a slight year-over-year increase of 2.9%, they remained at their lowest level since last July. Interestingly, the competition among buyers appears to be easing, with only 33.2% of homes selling for more than their asking price, a decrease from 38.2% a year prior. This figure represents the lowest share for any July since 2020. Notably, home prices fell in two metropolitan areas, Austin and Dallas, while remaining stable in San Antonio. In terms of new listings, the most significant increases were observed in Providence, San Jose, and Las Vegas, with rises of 20.1%, 19.2%, and 18.4%, respectively. Redfin operates in over 100 markets across the U.S. and Canada, employing more than 4,000 people.