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July Home Sales Dropped 19% Year Over Year to Lowest Level Since Mid-2020

New listings were also down, with some prospective sellers staying put as price growth slowed

SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN) Home sales dropped 19.3% year over year in July with their lowest level because the start of the pandemic, once the housing marketplace was at a near standstill, in accordance with a fresh report from Redfin (redfin.com), the technology-powered property brokerage. Thats the largest annual decline in U.S. home sales in greater than a year, a reflection of the continued cooling ramifications of 5.4%-plus mortgage rates and nationwide economic uncertainty.

Home sales dipped 4.1% from the prior month, the sixth-straight monthly decline. Some prospective homebuyers were sidelined since they were priced from the market; others were cautious with potential home-value declines soon.

Home prices increased at their slowest pace since June 2020, rising 7.7%. Price growth dipping in to the single digits after 2 yrs of double-digit increases reflects months of slumping homebuyer demand, homes sitting in the marketplace longer than before and dwindling competition.

Sellers also backed off, with many hesitant to market for under what they might have gotten at the height of the pandemic homebuying frenzy. Plus, many homeowners are staying put since they have a minimal mortgage rate in comparison to todays rates. New listings dropped 13.5% year over year, the largest decline in over per year. Most of the sellers who did list their homes had to stay for less. Twenty-one percent of sellers dropped their price tag in July, the best share since at the very least 2012, when Redfin started tracking this data.

The buyers that are still in the overall game are finally obtaining a break from bidding wars, this means they could be picky, said Raleigh, NC Redfin agent Pam Lewis. 90 days ago, buyers were saying, Get me a building with four walls and Ill make it happen. Now they will have some choices. They dont want a house if it doesnt have the fenced-in yard or guest room on the wish list, plus they want a $20,000 price reduction in case a home has been available for greater than a week. Im telling buyers theyre improbable to see their house values decrease as time passes, but they might not appreciate as fast as homeowners have grown to be accustomed to before couple of years.

National Highlights

Market Summary

July 2022

Month-Over-Month

Year-Over-Year

Median sale price

$

412,700

-3.3

%

7.7

%

Homes sold, seasonally adjusted

501,100

-4.1

%

-19.3

%

New listings, seasonally adjusted

626,900

-0.3

%

-13.5

%

All virginia homes, seasonally adjusted

1,513,900

1.6

%

3.9

%

Median days on market

21

3

6

Months of supply

2.1

0.4

0.7

Sold above list

47.3

%

-8.0 pp

-8.2 pp

Median off-market Redfin Estimate

$

419,600

0.0

%

19.6

%

Average sale-to-list

101.0

%

-1.2 pp

-1.2 pp

Share of for-sale homes with a cost drop

20.9

%

4.1 pp

9.7 pp

Average 30-year fixed mortgage rate

5.41

%

-0.11 pp

+2.54 pp

pp = percentage-point change

To see the entire report, including charts and metro-level data, please visit: https://www.redfin.com/news/home-sales-drop-july-2022

About Redfin

Redfin (www.redfin.com) is really a technology-powered property company. We help people look for a spot to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for additional money and charge half the fee. We also run the country’s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a house can take an instantaneous cash offer from Redfin or have our renovations crew fix up their house to sell for top level dollar. Our rentals business empowers millions nationwide to get apartments and houses for rent. Since launching in 2006, we’ve saved customers a lot more than $1 billion in commissions. We serve a lot more than 100 markets over the U.S. and Canada and employ over 6,000 people.

To learn more or even to contact an area Redfin agent, visit www.redfin.com. To understand about housing marketplace trends and download data, go to the Redfin Data Center. To be put into Redfin’s news release distribution list, email press@redfin.com. To see Redfin’s press center, just click here.

Redfin Journalist Services:

Ally Braun, 206-588-6863

press@redfin.com

Source: Redfin

Released August 22, 2022


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