U.S. homes sales fell 6 percent in August, marking the first annual decline in 15 months, according to new numbers out from Redfin. Sales were also down 1.4 percent from July 2021. Home prices, however, were up 16 percent, to median price of $380,271.
Median sale prices increased from a year earlier in all but two of the 85 largest metro areas Redfin tracks: Milwaukee, WI (-1.6 percent) and Bridgeport, CT (-1.1 percent). As has been the case for some time now, the largest price increases in August 2021 were in Austin (+36% percent), Phoenix (+25 percent) and Salt Lake City (+24 percent).
“When it comes to home prices in this market, what goes up stays up,” said Redfin Chief Economist Daryl Fairweather. “That’s especially true in the Sun Belt; home prices are up more than 20 percent from last year in Austin and Phoenix. Even with these steep increases, homes in these areas are still relatively affordable, so these and other hot migration destinations are going to continue to attract homebuyers from the coasts. As workers change jobs en masse and enhanced unemployment benefits come to an end, we could see even more households relocate for affordability in the coming months.”
Also of note in Redfin’s latest monthly report, new listings posted their first year-over-year decline since February, which could signal a tightening market. Seasonally adjusted new listings of homes for sale were down 6 percent in August compared to a year earlier, the first decline since February. New listings fell from a year ago in 56 of the 85 largest metro areas.
The typical home that sold in August went under contract in 16 days—up one day from the record low in June, and about half as much time as a year earlier.