02:53 PM EDT, 08/20/2024 (MT Newswires) -- US home prices largely held steady in July from June, while the annual pace of growth decelerated, according to a Redfin (RDFN) report published Tuesday.

Prices edged up 0.2% sequentially in July for the second month in a row, equal to the smallest pace since January 2023. Prices rose 6.8% year over year, cooling from a 7.3% rise in June and marking the smallest annual increase since January, according to the real estate brokerage.

"There aren't enough sellers listing their homes to cause prices to fall and there aren't enough buyers to create competition to drive prices up significantly," said Redfin Senior Economist Sheharyar Bokhari. "Relatively low sales and gradual price increases will remain the status quo each month until one of those things changes."

Twenty of the 50 most populous US metro areas tracked by Redfin reported a seasonally adjusted decline in home prices on a month-to-month basis in July. The biggest decreases were in Austin, Texas; San Francisco, and Nassau County, New York, at 1.6%, 1.1% and 0.7%, respectively.

While home prices continue to set all-time highs, they are doing so more slowly than in previous months due to a shortage of homes relative to buyer demand, according to Redfin.

Mortgage rates have dropped considerably in recent weeks, reaching the lowest level in over a year as of Aug. 8, according to Freddie Mac data. However, lower rates have yet to pull in enough buyers to the market, Redfin said.

Last month, S&P Global (SPGI) division S&P Dow Jones Indices said the S&P CoreLogic Case-Shiller Index rose 0.3% in May after seasonal adjustment, the same rate as in April. The 10- and 20-city composites registered seasonally adjusted growth of 0.4% and 0.3%, respectively, in May, slowing down from April, the data showed.

Price: 9.29, Change: +0.53, Percent Change: +6.05