The housing market frenzy may have peaked; home sales see record late-spring drop

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ST. LOUIS– The housing market frenzy may have peaked for the year according to experts with RedFin, a technology-powered real estate brokerage company.

This comes as data nationwide shows seasonally-adjusted home sales fell 1.2% from May to June, the largest drop at this time of year on record through at least 2012.

In St. Louis, home sales increased 20.5% from May to June and are up 14% from 2020. The median price in St. Louis last month was $238,000, an increase of 3.5% from May and a 13% increase from 2020.

And while sales are still on the rise in St. Louis, measures of market speed and competition seem to be at or near peak levels across the country.

“In June we entered a new phase of the housing market,” said Redfin Chief Economist Daryl Fairweather in a press release. “Home sales are starting to stall because prices have increased beyond what many buyers can afford. This summer I expect home prices to stabilize as more homeowners list their homes, realizing they likely won’t fetch a higher price by waiting longer to sell.”

The number of homes for sale fell to a record low nationwide, down 28% from 2020. In St. Louis, the drop was even more. There were 41.5% fewer homes for sale in St. Louis in June 2021 compared to 2020.

Also, homes nationwide sold in just 14 days on average, a record low.

You can read the entire report at RedFin.com.

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