U.S. home sales rose in July as prices continue to moderate across the country.
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Data from the National Association of Realtors shows that sales of previously owned homes rose 2% in July from June to 4.01 million units. Housing analysts had been expecting a slight decline in July’s home sales. Year-over-year, sales were up 0.8% this July.
Sales have been rising gradually in America as the average interest rate on a 30-year fixed mortgage continues to decline. The 30-year rate was above 7% in May of this year but has since declined to a national average of 6.62%.
Softening Prices
There were 1.55 million homes for sale at the end of July, an increase of 16% from the same month last year. The inventory of homes for sale in the U.S. right now is at its highest level since May 2020, but still well below pre-Covid years, says the Realtor Association.
Record inventory levels are exerting downward pressure on prices. The median price of an existing home sold in the U.S. during July of this year was $422,400, basically flat from a year earlier. Analysts say home prices appear to be at an inflection point after steadily rising over the last 25 months. The average home in July sold in 28 days, up from 24 days a year earlier.
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