July Housing Data Show Growing Sales, Moderating Inventory

The sale price of an American home increased 5.3 percent in July, the lowest reading in 22 months according to Redfin data, reflecting tempered growth.

The sale price growth rate has been declining over the past five months, and has not had a growth rate at this level since September 2016. The share for for-sale homes also declined, down 5.4 percent annually, making July the third month of diminishing inventory at this rate. In the previous 19 months, inventory averaged roughly seven percent declines or more, per Redfin data. In some of the nation's most expensive markets, inventory is increasing while sales are falling. In Portland, Ore., Seattle, and San Jose, Calif., inventory increased annually by between 21.8 and 28 percent, respectively. San Jose had 11.9 percent fewer sales year-over-year.

Homes that sold in July went under contract in a median 35 days, three days faster than last year and one day slower than in June ... For the first time since March 2015, the share of homes that sold above asking price declined year over year– albeit slightly– from 26.5 in July 2017 to 26.2 percent last month. Twenty-eight percent of homes on the market in July had a price drop, the largest share on record since Redfin began tracking this metric in 2009, and a 3.2 percentage-point increase over last July.

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