RMAX - Median home sales price drops for first time since January Re/Max says

While for months the cooling housing market slowed home price growth, the drop in home sales in July triggered the first decline in the median sales price fell since January, according to the Re/Max National Housing Report released Wednesday.

July's median sales price of $415K fell 2.9% from June and marked the lowest level since April's $406K. The 16.6% decline in home sales was also the first since January, the real estate brokerage company said. Y/Y, sales dropped 26.3%.

Inventory increased, with 13.3% more homes for sale than in June and 30.4% more than a year ago. Months supply of inventory doubled since May and is now at 1.8, which is still lower than historical averages.

Slipping home prices are making prospective sellers think twice. New listings fell 7.8% M/M and 7.2% Y/Y.

"The market is rebalancing after favoring sellers for so long," said Re/Max President and CEO Nick Bailey. "There's still ground to make up with new construction, but the change in recent months has brought some much needed relief to buyers."

The housing market, though, is far from weak. The average close-to-list price ratio in July was 101%, meaning that homes, in general, sold for 1% more than asking price. That dropped from 102% in June 2022 and July 2021.

The biggest Y/Y declines in closed transactions occurred in Houston (-45%), San Diego (-42%), and Miami (-41%). For new listings, the biggest Y/Y drops were in Kansas City, Missouri (-48%); St. Louis (-37%); and Burlington, Vermont (-32%).

Several residential real estate stocks are trading in the red in Wednesday premarket: Redfin ( NASDAQ: RDFN ) -2.3% , Anywhere Real Estate ( NYSE: HOUS ) (formerly Realogy) -3.8% , Zillow ( NASDAQ: Z ) -1.2% , and home-flipper Opendoor Technologies ( NASDAQ: OPEN ) -1.1% . Re/Max ( RMAX ) shares, though, don't seem to be getting much action before the bell.

Previously (Aug. 11), Redfin said newly listed homes drop most since 2020 as sellers stay put

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