The median price of homes sold in July rose nearly 20% from a year earlier to a new all-time high of $385,600, according to a new report from Redfin, the technology-powered real estate brokerage.
This annual growth rate was down from a peak of 26% in May, but still higher than any point on record prior to April of this year.
July was the 12th consecutive month of double-digit price gains, which Redfin said is significant because a year ago the housing market was already in a strong growth phase, after pausing briefly at the onset of the pandemic. One year later, Redfin says it still sees extremely strong growth, but the market is gradually becoming less competitive for buyers.
"Home prices are still soaring at an astonishing rate," said Redfin Chief Economist Daryl Fairweather. "Now that we're a year out from the post-lockdown rebound, we can no longer explain away the enormous price growth by pointing to the pandemic's earliest impacts on the housing market. While this ongoing trend continues to fuel an already severe affordability crisis, the market is becoming somewhat less competitive for homebuyers.”
Fairweather said demand has softened enough that “homes aren't flying off the market quite as fast or for as much above list price as they were in the spring. Mortgage rates are remaining about as low as they've ever been, so buyers who lose out in a bidding war don't have to fear that they've missed their window to buy.”
He added that as more homes are being listed, it may be worth waiting for “the right home at the right price.”
Median sale prices increased from a year earlier in all of the 85 largest metro areas Redfin tracks. The largest price increase was in Austin, Texas, at 39%, followed by Phoenix, Ariz., At 28%, and Salt Lake City, Utah, at +26%.
The smallest price increases were posted in New Orleans (+5%), Omaha, Neb. (+5%) and Virginia Beach, Va. (+6%).
Seasonally adjusted home sales in July were down 1% from a year earlier, and down 0.2% from June. Compared to July 2020, home sales fell in 55 of the 85 largest metro areas Redfin tracks.
For more on Redfin’s report, click here.
