According to data from the National Association of Realtors, second-hand home transaction volume increased 1.3% in July from June, with a seasonally adjusted annualized sales volume of 3.95 million units. It was the first increase in five months.
Sales fell 2.5% compared with the same period last year.
Sales increased the most in the Northeast, while the Midwest was flat. The Northeast also saw the largest price increases.
“Despite modest gains, home sales remain subdued,” NAR Chief Economist Lawrence Yun said in a release. “But consumers are certainly seeing more choices and, thanks to lower interest rates, Affordability is improving.”
Those sales are based on contracts likely to be signed in May and June, when popular mortgage rates for 30-year fixed loans were well above 7 percent. Interest rates began falling in July and are currently hovering around 6.5%.
All-cash discounts accounted for 27% of sales in July, up from 26% in the same period last year and well above the historical average.
The supply of homes for sale continued to rise in July. As of the end of the month, there were 1.33 million homes on the market, up 0.8% from June and 19.8% from July 2023. of supply.
However, the increase in supply has not helped cool home prices. The median existing home sales in July was $442,600, an increase of 4.2% year over year.
First-time homebuyers accounted for 29% of July sales, the same as June but down from 30% in July 2023. It has been hit hard by rapidly rising home prices and rising mortgage rates.
With interest rates now down slightly, demand is starting to pick up. A separate report from real estate brokerage Redfin found that demand for tours and other buying services from Redfin agents increased 4% last week to the highest level in two months.
Correction: A previous version of this story incorrectly described the time frame for the decline in home sales.
About The Author
