According to Redfin, U.S. home-sale prices increased 5.3 percent in July to a median of $307,400, compared to a year ago. The price growth rate has been dropping for five consecutive months and has not been this low since September 2016. Homes sales increased 4.1 percent in July compared to July 2017 as inventory declines.
The number of homes for sale in July was down 5.4 percent year over year. This marks the third month of supply declines around 5 percent following 19 months of inventory declines of over 7 percent.
Homes that sold in July went under contract in a median 35 days, three days faster than last year and one day slower than in June. While homes are still selling near a record-fast pace, there are some signs competition is waning. For the first time since March 2015, the share of homes that sold above asking price declined year over year– albeit slightly– from 26.5 in July 2017 to 26.2 percent last month. Twenty-eight percent of homes on the market in July had a price drop, the largest share on record since Redfin began tracking this metric in 2009, and a 3.2 percentage-point increase over last July. It’s worth noting that the share of homes with price drops typically peaks each year in July or August.
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