While July home sales showed the largest drop since April 2011, Redfin's Nela Richardson says there's no reason to panic.
The slowdown last month has more to do with this year’s calendar than buyer demand. Most of the drop is due to the fact that business days, when people usually close on home sales, were fewer in July. Because the month started on a Friday, there were five full weekends plus one national holiday, leaving only 20 days available for home closings.
And the calendar is a big deal.
Redfin data shows that the lion’s share of closings happen on Fridays. Homes very rarely close on Saturdays or Sundays. This July contained a below-average number of business days (2.3 percent lower than average) while July 2015 had the most favorable day-of-week setup for closings of any month on record (5.3 percent higher than average).