Homes Aren’t Flying off the Market Quite as Fast

The median price of homes sold in July was up nearly 20 percent from last year to a new all-time high of $385,600, according to a new report from Redfin. This annual growth rate was down from a peak of 26 percent 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 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, residential prices are exhibiting extremely strong growth, but the market is gradually becoming less competitive for buyers.

“Home prices are still soaring at an astonishing rate,” said Daryl Fairweather, Redfin chief economist. “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. 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. As more homes are being listed, it may be worth waiting for the right home at the right price.”