Home sales dropped for the first time in 15 months in August

August’s housing market followed the indicators that pointed toward a cooling off.

After bidding wars hit a six-month low in July, home sales posted an annual decrease for the first time in 15 months, according to Redfin. Completed sales dropped 6% annually in August and 1.4% monthly. Meanwhile, pending sales grew 7% from August 2020 and 6.1% from July.

The decline in total properties sold didn’t slow the rate of price growth, however. August marked the 13th straight month of double-digit annual gains, posting a 16.2% jump in median sales price to $380,300. Prices did, however, dip 1% month-over-month.

"When it comes to home prices in this market, what goes up stays up," Daryl Fairweather, Redfin Chief Economist, said in the report. “As workers change jobs en masse and enhanced unemployment benefits come to an end, we could see even more households relocate for affordability in the coming months."

The Sun Belt continues to showcase the highest increases in values. Among the 88 largest metro areas, Austin, Texas, led the country with a 35.7% annual gain in median sales price. Then came Phoenix at 25.2% and Salt Lake City at 24.3%. Only Milwaukee and Bridgeport, Conn., posted negative rates, falling 1.6% and 1.1%, respectively.

New York took the largest leap in sales, with a 64.8% surge from August 2020. Honolulu followed at 47.1% with San Francisco trailing in third at 30.1%. Properties sold in New Orleans fell furthest with a 23.4% annual drop, ahead of the 16.1% decline in Salt Lake City and 14.3% decrease in Warren, Mich.

McAllen, Texas stood above the rest in new listings, jumping 27% year-over-year. Inventory gains of 16.8% in Virginia Beach and 15.3% in Tulsa, Okla., were just behind. On the other end of the spectrum, new listings dropped 55.1% in Baton Rouge, La., 51.6% in Salt Lake City and 48.5% in Allentown, Pa.