Closed sales of previously owned homes rose 1.3% in July compared with June to a seasonally adjusted, annualized rate of 3.95 million units, according to the National Association of Realtors. That was the first gain in five months.<\/p>\n
Sales were 2.5% lower compared with the same time last year.<\/p>\n
Sales saw the biggest gains in the Northeast and were flat in the Midwest. Prices also rose the most in the Northeast.<\/p>\n
\u201cDespite the modest gain, home sales are still sluggish,\u201d said Lawrence Yun, NAR\u2019s chief economist, in a release. \u201cBut consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.\u201d<\/p>\n
These sales are based on contracts that were likely signed in May and June, when mortgage rates were well over 7% on the popular 30-year fixed loan. Rates began dropping in July and are now hovering around 6.5%.<\/p>\n
All-cash offers made up 27% of July sales, up from 26% the year before and far higher than the historical norm.<\/p>\n
The supply of homes for sale continued to move higher in July. At the end of the month, there were 1.33 million homes on the market, an increase of 0.8% from June and 19.8% higher than in July 2023. At the current sales pace, that represents a four-month supply, slightly lower than it was in June.<\/p>\n
The increase in supply did not, however, help to cool home prices. The median price of an existing home sold in July was $442,600, an increase of 4.2% year-over-year.<\/p>\n
First-time buyers made up 29% of sales in July, unchanged from June but down from 30% in July 2023. Historically, these buyers make up closer to 40% of home sales, but affordability has been hit hard in the last two years due to fast-rising home prices and higher mortgage rates.<\/p>\n
With rates now slightly lower, demand is starting to pick up. A separate report from Redfin, a real estate brokerage, found requests for tours and other buying services from Redfin agents rose 4% over the last week to its highest level in two months.<\/p>\n<\/p>\n
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