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Home sales in the United States are down, falling 1.2% from May to June – the biggest drop in nearly a decade.
The seasonally adjusted drop in home sales marks the largest drop during this time of year since 2012, which, according to real estate broker Redfin, suggests that “the housing market frenzy may have peaked for the year “.
In June, the number of homes for sale also fell, by about 28% from a year earlier. It also marked another record low since 2012, when real estate brokerage started tracking this data.
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Even though home sales are down, “measures of completed home sales reflect the most competitive market on record in June,” according to Redfin.
According to Redfin chief economist Daryl Fairweather, home sales are stagnating because prices have skyrocketed to “beyond what many buyers can afford.”
A real estate sign advertising a “contracted” home is pictured in Vienna, Va., Outside of Washington on October 20, 2014. (REUTERS / Larry Downing)
According to data from Redfin, the national median selling price in June hit a record high of $ 386,888, an increase of about 25% from the previous year.
More than half of homes, about 56%, sold above their list price, up from 27% from a year ago.
Plus, the typical home that sold in June went under contract in just two weeks, a far cry from the previous mark of around 39 days a year ago.
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Fairweather predicted prices will stabilize this summer, as more homeowners list their homes after “realizing that they are unlikely to get a higher price by waiting any longer to sell.”
By 2022, Fairweather expects home sales to “pick up,” especially as rents continue to rise and home ownership becomes more attractive.
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