July Home Sales Ends Summer Doldrums
Summer is typically the peak season for home sales. June usually leads the summer months with the most home sales, but fell short this year with a significant slowdown. July bounced back with a significant rebound in the summer doldrums.
Redfin, the Seattle-based brokerage reporting on the market says, “this July saw a healthy jump in homes sold throughout most of the 19 markets covered in this report,” improving 3% month-over-month and 17.6% from a rather disappointing July 2012.
The report also stated July 2013 saw the highest number of homes sold in the past 4 years. The 19 markets combined saw more than 94,000 sales. Chicago led the nation with 12,000 homes sold, which is up 5.7% in July and up 36.9 percent year-over-year.
Redfin doesn’t think that the recent gains will last.
While July saw impressive gains in some sales, reports on home price growth and inventory were less positive. “With less inventory, higher interest rates and continued buyer fatigue, August won’t see the same 7% month-over-month sales increase as in 2011 and 2012,” said analyst Tommy Unger. Unger continues, “In fact, based on current closed and pending sales, we expect a slight month-over-month drop in home sales for next month.”
The number of homes for sale in July fell 4.6% month-over-month, outdoing the 4 percent drop at the same time last year. Excluding this trend is San Jose, which reported a 7.1% monthly increase in for-sale homes.