\nThe typical home that went under contract in July was on the market for 43 days. That\u2019s up from 35 days a year earlier and is the longest span for any July since 2015, according to a new r<\/a>epo<\/a>r<\/a>t<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n
\nHomes are taking longer to sell because demand is shrinking due to high homebuying costs and economic uncertainty. Pending home sales fell 1.1% month over month in July to the lowest seasonally-adjusted level since November 2023, and existing-home sales ticked down to seasonally adjusted annual rate of 4,150,266\u2014the lowest level in nearly a year.<\/p>\n
\nWith homes lingering on the market, supply has been building up, giving buyers more options and less urgency. Active listings of homes for sale in July sat near the highest level in five years, but they did fall 1.1% from June\u2014the largest monthly seasonally-adjusted drop in roughly two years. New listings fell 0.4% month over month to the lowest seasonally-adjusted level since March 2024.<\/p>\n
\n\u201cSupply is starting to fall because prospective sellers are choosing not to list after seeing their neighbor\u2019s home linger on the market or sell for below the asking price,\u201d said Redfin Senior Economist Asad Khan<\/a>. \u201cSome existing sellers are also pulling their homes off the market, opting instead to rent their house out or hold off on a move altogether\u2014especially if they bought at the peak of the pandemic market and are worried about taking a loss<\/a>.\u201d<\/p>\n Home-Price Growth May Be Accelerating as Sellers Pull Back<\/b><\/p>\n \nThe median home sale price rose 1.4% year over year in July to $443,867\u2014the highest July level on record. By comparison, prices rose 0.9% year over year in June and 0.7% year over year in May. This is notable because at the beginning of the year, home-price growth was shrinking.<\/p>\n \nBuyers have been playing the waiting game for months. Now sellers are playing too, which is likely causing prices to heat up a bit.<\/p>\n \nThe good news for buyers is that while home prices are rising, mortgage payments have started to come down<\/a>. The average 30-year-fixed mortgage rate now sits at 6.58% after hitting a high of 6.75% in mid-July.<\/p>\n Homebuyer Competition Remains Scarce, And Some Buyers Are Backing Out of Deals<\/b><\/p>\n \nThe typical home that sold in July went for roughly 1% less than its asking price\u2014the biggest July discount since 2020. Less than one-third (28.9%) of homes went for more<\/i> than their final asking price, the lowest July share since 2019. Both of these stats indicate that homebuyer competition, at least nationally, has fallen.<\/p>\n \nSome buyers are backing out of deals after they\u2019ve already signed a contract; roughly 58,000 home-purchase agreements were canceled in July, equal to 15.3% of homes that went under contract that month\u2014the highest July rate in records dating back to 2017.<\/p>\n \nIn general, buyers have more negotiating power than they\u2019ve had in recent years because they\u2019re facing less competition and have more homes to choose from. But the balance of power may start to shift back toward sellers if supply continues to shrink.<\/p>\n \nFor now, Redfin agents say it\u2019s critical for sellers to make sure their homes are priced fairly and in good condition if they want to attract buyers. Homes that are overpriced often take a long time to sell.<\/p>\n \n\u201cIt\u2019s a weird market right now,\u201d said Shauna Pendleton<\/a>, a Redfin Premier<\/a> real estate agent in Boise, ID. \u201cFor the most part, it\u2019s crickets. I recently did a $100,000 price drop on my listing that had sat on the market for several weeks at over $600,000, only to lure one interested buyer. But there are also pockets of competition. I had a fixer-upper listing get seven offers after we priced it aggressively at $320,000.\u201d<\/p>\n July 2025 Housing Market Highlights: United States<\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n July 2025<\/b><\/p>\n<\/td>\n Month-over-month change<\/b><\/p>\n<\/td>\n Year-over-year change<\/b><\/p>\n<\/td>\n<\/tr>\n Median sale price<\/b><\/p>\n<\/td>\n \n$443,867<\/p>\n<\/td>\n \n-0.6%<\/p>\n<\/td>\n \n1.4%<\/p>\n<\/td>\n<\/tr>\n Existing-home sales, seasonally adjusted annual rate<\/b><\/p>\n<\/td>\n \n4,150,266<\/p>\n<\/td>\n \n-0.3%<\/p>\n<\/td>\n \n-0.5%<\/p>\n<\/td>\n<\/tr>\n Pending home sales, seasonally adjusted<\/b><\/p>\n<\/td>\n \n470,474<\/p>\n<\/td>\n \n-1.1%<\/p>\n<\/td>\n \n-0.9%<\/p>\n<\/td>\n<\/tr>\n Homes sold, seasonally adjusted<\/b><\/p>\n<\/td>\n \n423,090<\/p>\n<\/td>\n \n0%<\/p>\n<\/td>\n \n-0.9%<\/p>\n<\/td>\n<\/tr>\n New listings, seasonally adjusted<\/b><\/p>\n<\/td>\n \n526,244<\/p>\n<\/td>\n \n-0.4%<\/p>\n<\/td>\n \n-1.3%<\/p>\n<\/td>\n<\/tr>\n Total homes for sale, seasonally adjusted (active listings)<\/b><\/p>\n<\/td>\n \n1,919,066<\/p>\n<\/td>\n \n-1.0%<\/p>\n<\/td>\n \n11.1%<\/p>\n<\/td>\n<\/tr>\n Months of supply<\/b><\/p>\n<\/td>\n \n3.1<\/p>\n<\/td>\n \n0<\/p>\n<\/td>\n \n0.4<\/p>\n<\/td>\n<\/tr>\n Median days on market<\/b><\/p>\n<\/td>\n \n43<\/p>\n<\/td>\n \n3<\/p>\n<\/td>\n \n8<\/p>\n<\/td>\n<\/tr>\n Share of homes that sold above final list price<\/b><\/p>\n<\/td>\n \n28.9%<\/p>\n<\/td>\n \n-2.1 ppts<\/p>\n<\/td>\n \n-4.3 ppts<\/p>\n<\/td>\n<\/tr>\n Average sale-to-final-list-price ratio<\/b><\/p>\n<\/td>\n \n99.0%<\/p>\n<\/td>\n \n-0.3 ppts<\/p>\n<\/td>\n \n-0.6 ppts<\/p>\n<\/td>\n<\/tr>\n Pending sales that fell out of contract, as % of overall pending sales<\/b><\/p>\n<\/td>\n \n15.3%<\/p>\n<\/td>\n \n0.9 ppts<\/p>\n<\/td>\n \n0.8 ppts<\/p>\n<\/td>\n<\/tr>\n Monthly average 30-year fixed mortgage rate<\/b><\/a><\/p>\n<\/td>\n \n6.72%<\/p>\n<\/td>\n \n-0.1 ppts<\/p>\n<\/td>\n \n-0.13 ppts<\/p>\n<\/td>\n<\/tr>\n Note: Data are subject to revision<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n July 2025 Metro-Level Highlights<\/b><\/p>\n \nTo view the full report, including charts and full metro-level data, please visit: https:\/\/www.redfin.com\/news\/homes-sell-at-slowest-pace-in-decade<\/a><\/p>\n About Redfin<\/b><\/p>\n \nRedfin is a technology-driven real estate company with the country’s most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin\u2019s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.<\/p>\n \nYou can find more information about Redfin and get the latest housing market data and research at Redfin.com\/news<\/a>. For more information about Rocket Companies, visit RocketCompanies.com<\/a>.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20250818309839\/en\/<\/a><\/span><\/p>\n\n
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