July home sales cooled down, showing a decrease from June’s highest year-to-date level, according to the National Housing Report from real estate listings agent RE/MAX, which analyses 53 cities in the U.S.
In 49 of those markets, July home sales fell. The average decrease was 8.8% annually and 13.1% from June. In previous years, the average monthly drop was 8.2%.
“After a June jump in home sales, it's quite common to see July sales make a correction,” said Dave Liniger, RE/MAX CEO, chairman of the board and co-founder. “This is a summertime pattern that we often see on a national level.”
“Of course, one month doesn't make a trend and we still have a couple more months ahead in the traditional home-buying season,” Liniger said. “At the same time, it's important to note that, on a year-over-year basis, prices are rising at a moderate rate that's very much in line with historical averages.”
Not only did total home sales drop, but also the median sales price, which dropped to $225,000 in June, but remains 4.7% higher than last year.
Inventory continues to tighten, and dropped 3% from last month and 16.6% from last year. The current months’ supply rests at 3.5 months. Five metro areas even reported an inventory supply of less than two months.
The average days on market decreased to 53 days, just one day less than June’s average and four days less than last year.
Just one month after posting a nearly four-year high, home sales in California took a step backwards in the month of July, with year-to-date sales falling from previous year for first time in 18 months, according to a new report from the California Association of Realtors.
Quicken Loans noted that, while home sales are cooling off nationwide, housing markets still differ drastically from one region to another.
“One of the most important things for consumers to take away from the HPPI is just how regionalized housing truly is,” said Quicken Loans Chief Economist Bob Walters. “While those on the West coast are being surprised by their high appraisals, homeowners in the Northeast and Midwest are more likely to be shocked by their low values.”