It’s been a full decade since house sales have been as slow as they’ve been this summer, according to a new market snapshot from Redfin. But people who are buying are striking some decent deals.
The typical house that sold in July went for roughly 1% less than the asking price. That doesn’t seem like much, but it’s the largest discount since 2020, the real estate brokerage reported. Moreover, less than a third of all houses sold for more than their asking price, the lowest July share of that kind in six years.
Another indication that competition among buyers is withering: Houses are taking longer to sell. The typical home that went under contract in July was on the market for 43 days. That’s up more than a week from 35 days from July a year ago, and is the longest span for any July since 2015.
With listings lingering longer, supply has been building up, presenting would-be buyers with more options but inducing less urgency. Active listings in July were near their highest level in five years.
At the same time, listings fell 1.1% from June, the largest monthly seasonally-adjusted drop in roughly two years. New listings fell 0.4% month-over-month to the lowest seasonally-adjusted level since March 2024.
Supply is starting to slide because prospective sellers are choosing not to list after seeing their neighbor’s home linger on the market or sell for below the asking price, according to Redfin Senior Economist Asad Khan. And some who have planted a for-sale sign in their front yards but not received any nibbles are pulling their places off the market.
“Buyers have been playing the waiting game for months,” Khan said. “Now sellers are playing, too, which is likely causing prices to heat up a bit.”
The median sales price rose 1.4% year-over-year in July to $443,867, the highest for any July on record. By comparison, prices rose 0.9% year-over-year in June and 0.7% year-over-year in May. That’s “notable,” says Khan, because at the beginning of the year, home-price growth was shrinking.
For now, the Redfin report says, buyers have more negotiating power than they’ve had in recent years. But the balance of power may start to shift back toward the sellers’ side if supply continues to shrink.
