Home sales fell 19.3% year-over-year in July to their lowest level since the beginning of the pandemic as higher mortgage rates and a drop in new listings sidelined would-be buyers in a cooling market. The July sales rate marked the sixth straight monthly decline, and as more buyers pull back, home price growth is also decelerating at a pace not seen since 2020, according to Redfin.
After two years of double-digit increases, home prices grew by just 7.7% in June, making buyers more likely to negotiate and sellers more hesitant to list their homes, though prices remain at record highs nationwide.
“The buyers who are still in the game are finally getting a break from bidding wars, which means they can be picky,” said Raleigh, NC Redfin agent Pam Lewis. “Three months ago, buyers were saying, ‘get me a building with four walls and I’ll make it work.’ Now they have some choices. They don’t want a home if it doesn’t have the fenced-in yard or guest room on their wish list, and they want a $20,000 price reduction if a home has been on the market for more than a week.”
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