Sales of previously owned homes dropped 2.2% in July from June to a seasonally adjusted, annualized rate of 4.07 million units, according to the National Association of Realtors.
Sales were 16.6% lower compared with July of last year. Homes sold at the slowest July pace since 2010.
This count is for closings, so contracts were likely signed in May and June, when mortgage rates went from around 6.5% to well over 7%.
Sales fell month to month in all regions except the West, where they rose 2.7%. Sales dropped the most in the Northeast, down 5.9%.
The National Association of Realtors is blaming higher rates and still tight supply for the decrease. There were 1.11 million homes for sale at the end of July, 14.6% fewer than July 2022 and the lowest level since 1999. There are now half as many homes for sale as there were pre-Covid.
At the current sales pace, that represents a 3.3-month supply. A six-month supply is considered balanced between buyer and seller.
www.cnbc.com/2023/08/22/home-sales-drop-again-in-july-as-supply-drops-again.html