Home Sale Prices Reach Record Highs for 9th Consecutive Week, But Signs a Shift May Be Coming

The median U.S. home sale price hit a record high for the ninth consecutive week, according to Redfin’s latest report. The four-week period ending July 7 saw the median sale price climb to $397,482, marking a 4.7% year-over-year increase. 

Although this marks the largest rise in over four months, there are signs that home price growth may start to slow soon. 

Let’s look at the data. 

Signs of Slowing Price Growth

Despite higher mortgage rates, sale prices have remained elevated. This trend is largely attributed to historically low inventory levels, which continue to push prices upward. 

Yet data for home sale prices are lagging since they reflect deals from a month or two earlier. Redfin reported that while home prices continue to beat records each week, there are emerging signs that price growth could decelerate soon. 

One sign is that the typical home is now selling for 0.4% less than its asking price, a notable shift from homes selling above the list price in previous years. This is the first time homes are selling under list price since July 2020.

In addition, inventory levels are increasing year over year despite remaining historically low. New listings have increased by 7.3%, and the total number of active listings by 18.3%. In addition, over 60% remain listed for at least a month before going under contract.

As a result, the market is starting to see more homes available, which could gradually ease price growth pressures. 

Additional signs of slowing price growth include an increase in price cuts, with 6.5% of home sellers dropping their asking price. Redfin reported homebuyer demand has also decreased by 16% year-over-year, based on requests for home tours and home buying services.

While home sale prices have reached new highs nationally, trends in local markets vary. Real estate agents must remain adaptable and leverage their expertise to help clients make informed decisions in this complex market environment.