Redfin: Existing-Home Sales See Lowest July on Record Going Back to 2012

(Image courtesy of Redfin; Breakout image courtesy of Alexas Fotos/pexels.com)

Redfin, Seattle, reported existing-home sales rose 0.6% month-over-month in July but fell 2% year-over-year to just 4,094,991–the lowest July on records going back to 2012.

Pending sales fell lower than any month except for early-pandemic April 2020. They were down 2.9% from June and 5.8% year-over-year.

While mortgage rates have fallen somewhat recently, home prices remain elevated–the median sales price was up 4.1% year-over-year in July to sit at $439,170. That’s less than 1% below the all-time high of $442,389 in June.

“Waiting around for mortgage rates to fall further isn’t a surefire strategy,” said Redfin Senior Economist Elijah de la Campa. “If you have the means to buy and have been thinking about doing so, now actually might not be a bad time. That’s because mortgage rates have fallen enough to boost your purchasing power, but not enough to bring tons of buyers off of the sidelines and drive up competition.”

The total supply of homes for sale rose a record 13.7% year-over-year. However, they also fell 0.6% from June.

Other data is showing that some buyers may be able to eke out deals–only 33.2% sold for more than their asking price. That compares with 38.2% in July 2023 and the lowest share of any July in four years.

Almost 15.8% of home-purchase agreements were canceled in the month–the highest July on record going back to 2017. Buyers in Florida and Texas were the most likely to back out of deals.