Zillow reports US home sales jump 7% in July as pending listings stall

The Zillow July Market Report shows U.S. existing home sales rose 7% year‑over‑year in July, the strongest annual gain this year. Home values increased 1.1% from a year earlier, with the typical home priced at $371,757. However, newly pending listings grew only 0.3% YoY, indicating a drying pipeline for future sales. Mortgage rates, which were around 6.5% in June, rose further after an oil‑price shock, threatening the current affordability edge.

Zillow chief economist Mischa Fisher warned that July may represent the peak for sales this year, as higher rates could push typical mortgage payments above last‑year levels. Inventory stood at 1.41 million homes, with active listings up 1.5% YoY and new for‑sale listings at 387,203, up 3.1% YoY. Sales volume fell 2.7% from June.

A parallel analysis of the market’s “K‑shaped” dynamics notes entry‑level home sales fell 5.4% YoY in May while supply rose 4.5%, and prices for these homes rose 2.3% to $202,000. Luxury home sales, representing the top 5% of the market, increased 6.2% YoY. The median existing‑home price hit a record $440,600, and 30‑year fixed mortgage rates averaged 6.75%, keeping many buyers priced out of the market.