The real estate market in August followed the indicators pointing to a slowdown.
After the bidding wars hit a six-month low in July, home sales fell for the first time in 15 months, according to Redfin. Completed sales declined 6% annually and 1.4% monthly in August. Meanwhile, outstanding sales rose 7% from August 2020 and 6.1% from July.
However, the decline in the total number of properties sold has not slowed price growth. August marked the 13th straight month of double-digit annual earnings, seeing its average selling price jump 16.2% to $ 380,300. However, prices fell 1% month on month.
"When it comes to home prices in this market, the upside remains," Redfin chief economist Daryl Fairweather said in the report. "As workers change jobs en masse and the extended unemployment benefits expire, even more households could move in the coming months for reasons of affordability."
The sun belt continues to show the highest increases in value. Austin, Texas led the country among the 88 largest metropolitan areas with an average sales price increase of 35.7% annually. Then came Phoenix with 25.2% and Salt Lake City with 24.3%. Only Milwaukee and Bridgeport, Connecticut, saw negative interest rates, falling 1.6% and 1.1%, respectively.
New York made the biggest leap in sales with an increase of 64.8% from August 2020. Honolulu followed with 47.1% and San Francisco followed in third place with 30.1%. New Orleans real estate sales declined the most, declining 23.4% annually, before declining 16.1% in Salt Lake City and 14.3% in Warren, Michigan.
McAllen, Texas outperformed the rest in new registrations, up 27% year over year. Just behind were inventory increases of 16.8% in Virginia Beach and 15.3% in Tulsa, Oklahoma. At the other end of the spectrum, new listings were down 55.1% in Baton Rouge, La., 51.6% in Salt Lake City, and 48.5% in Allentown, Pennsylvania.