Home sales fell nearly 6% in July as housing market slides into a recession

The sales of previously owned homes fell in July compared to the previous month.

The sales count fell to a rate of 888-492-0 888-492-0. The sales pace is the lowest since November 2015, with the exception of a brief plunge at the beginning of the Covid epidemic.

The sales fell from a year ago.

In terms of economic impact we are definitely in a housing recession because builders are not building. Are homeowners in a downturn? It's absolutely not. The homeowners are comfortable with their finances.

The contracts may have been signed in May and June. Mortgage rates went up in June, with the average rate on a 30-year fixed loan going up to 6 percent. It went back into the 5% range. The hit to affordability in June was hard due to soaring inflation and the fact that the rate started this year at 3%.

Homebuyers are still having a hard time finding a home. There was no change in the number of homes for sale at the end of July. 3.3 months is the sales pace at the moment.

Prices are still high even though demand is falling. In July, the median price of a home sold was $400,800, an increase of 10.8% over the same month a year ago. This year's increase is the smallest since July 2020.

Danielle Hale, chief economist for Realtor.com, said that the median home sales price continued to climb, but at a slower pace for the fifth month in a row. Home listings were almost twice as likely to have a price cut in July 2022, as compared to one year ago.

The sales activity on the higher end of the market is fading fast. The top tiers have more supply. Sales of homes priced between $100,000 and $250,000 were down 34%, while sales of homes priced between $750,000 and $1 million were down 8%. The sales of homes over $1 million fell.

In July, first-time buyers made up 29% of buyers. They make up 40% of sales, but are struggling the most with affordability. They can't save for a down payment because of high rents.

The market is still moving fast even though sales are slow. In July, a home went under contract in 14 days, which is the fastest ever recorded. It was one year ago. That was not normal, said Yun.