Existing home sales in the U.S. fell in July according to a new report from TD Economics. Rates dropped 2.2 percent month-on-month to 4.07 million units in July. This was below market expectations and it represented a decline to 4.15 million. 

Overall activity was down 16.6 percent compared to 2022, but up 1.8 percent from the cyclical low of 4.0 million recorded in January. 

Single-family home sales fell 1.9 percent to 3.65 million units in July, while sales in the smaller condo/co-op segment fell 4.5 percent to 420 thousand units. Meanwhile, regionally sales varied with sales down 5.9 percent in the Northeast, 3.0 percent in the Midwest and 2.6 percent in the South. Sales, however, were up 2.7 percent in the West.  

In July, there were 1.11 million homes available for sale in July, up 3.7 percent from June, however, this figure is down from 14.6 percent from a year ago. Home prices remain up from a year ago by 1.9 percent and this is the first increase in 5 months. 

According to the U.S. Census Bureau, the median sales price of new houses sold in July 2023 was $436,700 and the average sales price was $513,000.

Mortgage rates are also on the rise, with higher interest rates and inflation driving up numbers. Rates increased to 6.8 percent in June and July, with rates now sitting at 7.3 percent to 7.5 percent.

Experts believe this may have an impact on the home building industry as sales slow and single-family housing permits stall.