Summer home sale pace stumbles to 10-year low 

The latest housing data is pointing to the fourth consecutive summer of sluggish demand as market activity remains largely on pause.

Home sales are currently at the slowest pace for the season in a decade, according to Redfin. Meanwhile, the typical home for sale in July spent 43 days on the market, up more than a week compared to a year ago and the longest stretch for any July since 2015.

In a separate report, Zillow estimated that the median number of days a typical home spent on the market was 60, the longest for any July since Zillow began tracking this data.

As the amount of time that homes for sale sit on the market lengthens, sellers appear to be taking the hint. According to Redfin's report, new listings are down 1.3% compared to a year ago — and while inventory is up 11.1% year-over-year, active listings are down 1% compared to June, suggesting supply is already weakening even with a month left of summer.

"Supply is starting to fall because prospective sellers are choosing not to list after seeing their neighbor's home linger on the market or sell for below the asking price," Redfin Senior Economist Asad Khan said in a news release. "Some existing sellers are also pulling their homes off the market, opting instead to rent their house out or hold off on a move altogether — especially if they bought at the peak of the pandemic market and are worried about taking a loss."

Two different markets? While the national numbers reveal a sluggish summer, this isn't the case in every region. Zillow's July market report shows that home values are rising in half of the country. Demand remains high in the Northeast and the Midwest, according to Kara Ng, senior economist at Zillow.

While values are weakening in the South and West, this still does not appear to be enough to offset the huge run-up in value those areas experienced during the pandemic.

"Perhaps more than ever, whether it's a good time to buy depends on where you live," Ng said. "A defining trait of this market is that buyers are gaining leverage that most of them can't use, because cost barriers are too high. Affordability is gradually improving where builders have been able to keep up with demand, showing why continuing to build is so critical. It's not just about giving buyers power, it's enabling them to use it."

Biggest gains and losses: Of the 50 largest U.S. metros, home values have in the past year increased the most in Cleveland (up 4.7%). Hartford, Connecticut, was second in Zillow's report, with home values up 4.5%, and Louisville, Kentucky, was third (up 3.9%).

The market that experienced the largest drop in home value was Tampa, Florida, at 6.2%. Austin, Texas, and Miami followed with 6% and 4.6% drops, respectively.