July Marked 12 Straight Months of Double-Digit Price Increases

Rhea-AI Summary

In July 2021, the median home price rose 19.5% year-over-year to an all-time high of $385,600, marking the 12th consecutive month of double-digit increases. Despite a slight decrease from the May peak of 26%, the growth indicates sustained market strength with a 1% drop in home sales compared to last year. Active listings fell 25% year-over-year, while new listings were largely flat. The average 30-year mortgage rate stood at 2.87%, contributing to a slightly less competitive environment for buyers, although affordability remains a concern.

Positive

• Median home price increased to $385,600, up 19.5% year-over-year.
• Continued strong demand reflected in 12 consecutive months of price gains.
• Mortgage rates remain low at 2.87%, maintaining buyer interest.

Negative

• Home sales down 1% year-over-year, indicating potential market cooling.
• Active listings decreased 25% year-over-year, reaching all-time lows.
• Many metro areas saw sales declines, with Richmond, VA down 52%.

SEATTLE, Aug. 19, 2021 /PRNewswire/ -- (NASDAQ: RDFN) —The median price of homes sold in July was up nearly 20% from a year earlier to a new all-time high of $385,600, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

This annual growth rate was down from a peak of 26% in May but still higher than any point on record prior to April of this year.

July was the 12th consecutive month of double digit price gains, which is significant because a year ago the housing market was already in a strong growth phase, after pausing briefly at the onset of the pandemic. One year later, Redfin is still seeing extremely strong growth, but the market is gradually becoming less competitive for buyers.

"Home prices are still soaring at an astonishing rate," said Redfin Chief Economist Daryl Fairweather. "Now that we're a year out from the post-lockdown rebound, we can no longer explain away the enormous price growth by pointing to the pandemic's earliest impacts on the housing market. While this ongoing trend continues to fuel an already severe affordability crisis, the market is becoming somewhat less competitive for homebuyers. Demand has softened enough that homes aren't flying off the market quite as fast or for as much above list price as they were in the spring. Mortgage rates are remaining about as low as they've ever been, so buyers who lose out in a bidding war don't have to fear that they've missed their window to buy. As more homes are being listed, it may be worth waiting for the right home at the right price."

Market Summary	July 2021	Month-Over-Month	Year-Over-Year
Median sale price	$385,600	-0.3%	19.5%
Homes sold, seasonally adjusted	604,000	-0.2%	-1.5%
Pending sales, seasonally adjusted	558,300	1.0%	8.1%
New listings, seasonally adjusted	653,300	4.3%	0.2%
All homes for sale, seasonally adjusted	1,328,900	-0.1%	-25.2%
Median days on market	15	0	-20
Months of supply	1.2	0.1	-0.5
Sold above list	55.5%	-0.8 pts†	25.5 pts†
Median off-market Redfin Estimate	$353,700	1.3%	14.6%
Average sale-to-list	102.3%	-0.3 pts†	3.2 pts†
Average 30-year fixed mortgage rate	2.87%	-0.11 pts†	-0.15 pts†
† - "pts" = percentage-point change

 

Median sale prices increased from a year earlier in all of the 85 largest metro areas Redfin tracks. The largest price increase was in Austin, TX (+39%), followed by Phoenix (+28%) and Salt Lake City (+26%).

The smallest price increases were posted in New Orleans (+5%), Omaha, NE (+5%) and Virginia Beach (+6%).

Seasonally adjusted home sales in July were down 1% from a year earlier, and down 0.2% from June. Compared to July 2020, home sales fell in 55 of the 85 largest metro areas Redfin tracks. The biggest sales declines were seen in Richmond, VA (-52%), Salt Lake City (-26%) and Grand Rapids, MI (-25%). The largest gains were in places where sales were still somewhat depressed in July 2020, including New York (+79%), Nassau County, NY (+53%), and Honolulu (+37%).

Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 25% year over year to their lowest level on record.

Only two of the 85 largest metros tracked by Redfin posted a year-over-year increase in the number of seasonally adjusted active listings of homes for sale: Milwaukee (+3%) and Columbus (+0.1%). The biggest year-over-year declines in active housing supply in July were in Baton Rouge, LA (-51%), North Port, FL (-51%) and Raleigh, NC (-44%).

Seasonally adjusted new listings of homes for sale were essentially flat (+0.2%) in July from a year earlier, a return to the pattern typical of the four years prior to the pandemic. New listings fell from a year ago in 41 of the 85 largest metro areas. The biggest declines were in Allentown, PA (-52%), Baton Rouge (-43%) and St. Louis, MO (-38%). New listings rose the most from a year ago in McAllen, TX (+21%), San Jose, CA (+20%) and Virginia Beach (+20%).

The typical home that sold in July went under contract in 15 days—less than half as much time as a year earlier, when homes sold in a median 35 days—but up one day from June.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/july-housing-market-12-months-double-digits/

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

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SOURCE Redfin

FAQ

What was the median home price in July 2021 for RDFN?

The median home price in July 2021 was $385,600, up 19.5% year-over-year.

How many homes were sold in July 2021 according to RDFN?

Approximately 604,000 homes were sold in July 2021, a decrease of 1.5% from the previous year.

What is the trend in home prices according to RDFN's July report?

Home prices continue to show strong growth, with 12 consecutive months of double-digit increases, though the rate of increase has slightly slowed.

What was the average mortgage rate reported by RDFN in July 2021?

The average 30-year fixed mortgage rate was reported at 2.87% in July 2021.

Which metro area had the largest home price increase in July 2021?

Austin, TX experienced the largest home price increase at 39% year-over-year.