A record 60,000 Americans have ripped up their home deals in July, citing high prices and fears about the upcoming U.S. presidential election.
While existing home sales rose slightly last month, they were still the lowest July level on record, according to a new report from real estate brokerage Redfin.
“Sales of existing homes rose 0.6% month over month in July but fell 2% year over year—to a seasonally adjusted annual rate of 4,094,991. That’s the lowest July level in records dating back to 2012,” Redfin’s Lily Katz wrote.
The technology-powered real estate firm noted pending sales also fell to the lowest level of any month on record aside from April 2020, when the COVID-19 pandemic first impeded transactions and the supply chain.
While the average interest rate on a 30-year mortgage has dropped to 6.49%, down from its 7.22% peak in May, many homebuyers are waiting to see if rates drop further. Homebuyers are also concerned about home prices, which still sit near their record high.
Redfin found that the median sale price of a home increased 4.1% year over year in July to $439,170.
Nicole Stewart, a Redfin real estate agent based out of Boise, Idaho, said homebuyers have also expressed concern about the November election.
“A lot of people are also concerned about the political climate. They can afford to buy but have been holding off because it’s unclear where the country will be in six months. Though in reality, who is in the Oval Office probably won’t have much of an impact on the housing market,” she said.
A “Home for Sale” sign in the Capitol Hill neighborhood of Washington, DC, US, on Tuesday, July 30, 2024. Consumers have continued to spend and make major purchases, which is one of the key reasons economists are hopeful the Fed can tame inflation wi (Tierney L. Cross/Bloomberg via Getty Images / Getty Images)
The 60,000 home purchase agreements canceled in July equal 16% of all homes under contract.
The good news is that the supply of homes rose a whopping 14% last month. Redfin suggested this will give buyers more options and further room to negotiate.
