The median home sale price broke a record for the ninth consecutive week, reaching a level of $397,482 during the four weeks ending July 7, according to new data from Redfin (NASDAQ:RDFN). This represents a 4.7% year-over-year spike and the biggest increase in over four months.
Home sale prices have remained in ascension even though elevated mortgage rates and tight inventory are diluting homebuying demand – pending home sales are down 3.5% from one year earlier while mortgage purchase applications are down 13%.
However, Redfin predicted price growth may slow – the typical home is selling for 0.4% less than its asking price, which is the first time since July 2020 that the typical home has sold under list price. Furthermore, 32% of homes are selling above asking price, down from 36% one year ago and the lowest share at this time of year since 2020.
Also contributing to a potential deceleration of rising sales prices is an inventory uptick – new listings are up 7.3% year-over year and the total number of homes for sale is up 18.3%.
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