Seasonally-adjusted home sales fell 1.2% from May to June, making this the largest drop at this time of year on record through at least 2012, according to a new report from Redfin.
“In June we entered a new phase of the housing market,” said Redfin Chief Economist Daryl Fairweather. “Home sales are starting to stall because prices have increased beyond what many buyers can afford. This summer I expect home prices to stabilize as more homeowners list their homes, realizing they likely won’t fetch a higher price by waiting longer to sell. But as rents rise, homeownership will become appealing to more people, and home sales will rev back up by 2022.”
Pandemic lockdowns significantly slowed homebuying and selling, and they slightly depressed sale prices in June 2020. That means the year-over-year trends for home prices, pending sales, closed sales and new listings are exaggerated. For more context, Redfin’s full report includes extra charts that better highlight recent changes.
According to the report, the national median home-sale price hit a record high of $386,888, up 25% year over year (down from the record of 26% in May). The number of homes for sale fell to a record low, down 28% from 2020.
The typical home sold in just 14 days, a record low and down from 39 days in June 2020, and 56% of homes sold above their list price, a record high, up from 27% a year ago.
The average sale-to-list ratio, a measure of how close homes are selling to their asking price, hit a record high of 102.6%. In other words, the average home sold for 2.6% above list price.