In a grim sign for the economy, home sales drop to their lowest point in years…. And a woke West Coast town is leading the decline

Sky-high prices, stubbornly high mortgage rates and economic uncertainty all mean that would-be homebuyers are staying on the fence. 

America's housing market is in a summer slump, with home sales falling 4.1 percent in July from the prior month – and notching their lowest level in nearly two years. 

According to data from Redfin, the total number of homes for sale also slipped 0.3 percent from the previous month. 

Real estate experts say that high mortgage rates are discouraging homeowners from selling because moving could mean giving up a much cheaper mortgage rate. Other potential sellers are holding back as they see sluggish demand from buyers.

Jeff Lichtenstein, CEO of Echo Fine Properties, told the Daily Mail that the market is 'drifting back into a stalemate,' citing mortgage rates, tariffs and inflation as the trends holding back buyers. 

'This has made it difficult for the consumer to keep up as wages are increasing more than housing prices,' he told the Daily Mail. According to Yahoo Finance, 30-year fixed mortgage rates hover at around 6.55 percent in August 2026.

Home sales in certain areas are slipping faster than others, with the San Antonio market seeing a 12 percent drop compared to this time last year. Dallas hovers at about a 10 percent decrease and Fort Worth 9.9 percent. 

Pending home sales are falling fastest in Seattle, declining 15.6 percent year over year, as potential buyers stall over high housing costs. 

Seattle is also among one of the most expensive cities in the country. According to Redfin, the median sale price of a home in Seattle was $890,000 over the last three months. 

Today, homes in the city sell after 11 days on the market on average, compared to seven days last year.

For real estate experts, this sudden drop in pending home sales isn't surprising. Layoffs at major employers in the area, like Microsoft and Amazon, continue to impact would-be homebuyers.

'Seattle is a tech-driven market, and right now a lot of buyers are feeling cautious about layoffs, AI and job security,' said Redfin agent Chase Costello. 'Tech workers aren’t moving between companies - or moving into the area - as much as they used to, and that means fewer people are trading up into new homes.' 

Costello, who is based in the Seattle area, confirmed that buyers are 'still out there,' but they’re 'taking more time and being more careful about making a major purchase.'

For buyers who can afford to stay in the game, Redfin's head of economics research, Chen Zhao, said buyers may be able to negotiate on price and secure concessions from sellers eager to unload their homes.

And while Seattle and parts of Texas are struggling, some markets are moving in the opposite direction, especially those across Florida. In West Palm Beach, home sales surged 17.1 percent from a year earlier.

Compass realtor Jake Kennedy said the market today is suffering from 'misaligned expectations' as much as anything else. 

'Here in Nashville I am seeing a slowdown, but I'm also seeing sellers become more realistic the longer homes are sitting on the market,' Kennedy told the Daily Mail. 'The well-priced properties are still selling - the ones that are struggling are priced for a market that no longer exists.' 

'Buyers have become patient because they can be, which is forcing sellers to become more flexible,' he added. 'The market is going to continue being wonky until both sides meet in the middle.'

But some sellers, and realtors, nationwide are still feeling the heat. 

Jon Brooks of Momentum Realty in Jacksonville, Florida said that today's mortgage rates are taking a heavy toll on potential buyers.

Even buyers who get pre-approved, he said, experience an 'affordability ceiling' after seeing the actual monthly cost and deciding it no longer fits their budget. 

As a result, sellers in his market are becoming much more willing to reduce prices.

'Nearly one in four Florida listings has taken a price cut, and that share has continued to climb,' Brooks told the Daily Mail. 'The sellers finding success today are pricing for today's market - not last year's comparable sales.'

For Lisa Patterson with Daniel Ravenel Sotheby’s International Realty in Charleston, South Carolina, the market appears 'much more normal and stabilized.'

'Properties are selling, and I’m actually seeing particular strength at some of the higher price points,' she told the Daily Mail. 'Those buyers often have more liquidity, and many are making a lifestyle decision rather than basing the purchase entirely on an interest rate.'