July was the 12th consecutive month of double-digit price gains, according to new data from Redfin. Also marking a strong month for the market, the median price of homes sold in last month was up nearly 20 percent from a year earlier to a new all-time high of $385,600.
While Redfin notes that this annual growth rate was down from a peak of 26 percent in May, it is still higher than any point on record prior to April of this year.
“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,” Fairweather continued. “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.”
Austin continues to be hot spot nationally, with a 39 percent price increase year-over-year, according to July numbers. That’s followed by Phoenix at 28 percent and Salt Lake City at 26 percent.
The smallest price increases were in New Orleans (+5 percent), Omaha (+5 percent) and Virginia Beach (+6 percent).