Redfin Witnesses 16% Dip In Pending Home Sales For July Ailed By Deceleration In Homebuyer Demand

Pending home sales slumped 15.7% Y/Y in July, as homebuyer demand remains below pre-pandemic levels, according to a new report from Redfin Corporation RDFN, the technology-powered real estate brokerage.

"Home sales hit a bottom in 2022 and haven't meaningfully budged since," said Redfin Chief Economist Daryl Fairweather. 

Housing prices have remained high despite sluggish homebuyer demand. In July, the total number of homes for sale (active listings) dropped 19.5% from a year earlier, the most significant annual decline in more than two years.

Also Read: Doom And Gloom Ahead: Redfin CEO Unveils Dire Forecast For Housing Market

July pending home sales rose 0.7% from a month earlier to the highest level since the start of the year on a seasonally adjusted basis.

The average 30-year-fixed mortgage rate was 6.84% in July, up from 6.71% a month earlier. 

"Fading recession fears and the prospect of further home price increases have brought some house hunters off the sidelines, but for the most part, buyers remain hesitant to jump into the market because their buying power is so much lower than it was a year ago," Fairweather added.

Price Action: RDFN shares are trading higher by 0.11% to $8.79 on the last check Friday.