Homes Sales Drop Month-Over-Month and Year-Over-Year in July 2022

Redfin, the Seattle-based, technology-powered real estate brokerage firm, reported today (8-22-22) that their home sales have dropped 19.3% year-over-year in July. They are now at their lowest level since the beginning of the COVID-19 pandemic when the housing market was close to a standstill. Redfin says that this is the largest annual decline in US home sales in more than a year, and they believe it reflects the continued cooling effects of 5.4%-plus mortgage rates and nationwide economic uncertainty.

Home sales in July dipped 4.1% from June, marking the sixth-straight monthly decline. Redfin says that some potential homebuyers were sidelined because of being priced out of the marketplace, while others were concerned about near-term home price depreciation.

Rising only 7.7% in July, home prices increased at their slowest pace since June of 2020. Price growth dipped into single digits in July after two years of double-digit increases, which Redfin believes reflects months of slumping homebuyer demand and homes sitting on the market longer than before and the resulting dwindling competition.

Finally, new listings have dropped 13.5% year-over-year, the largest decline in over a year, with many sellers who have listed their properties having to settle for less. Redfin highlighted that 21% of sellers using their service lowered their asking price in July—the highest share since at least 2012, when Redfin started tracking this data.