US home sales have dropped to near their lowest levels on record, a bad sign for sellers and builders but a setup for bargain-hunting buyers.

• Home sales fell again in July, missing expectations, during what should be the peak buying season.
• Average home prices are still falling month-to-month, and sales are hovering just above the 2009 crash lows.
• Companies are quietly holding off on hiring, with some cutting up to a third of their staff, making people cautious about big purchases.
• Buyers are pulling back to save for the school year and holidays, so demand is expected to weaken further into the fall.
• Some apartment complexes and homes are already down about 35% from their COVID-era peaks, and commercial mortgage bonds are taking heavy losses.

Outlook: If rates climb and stocks wobble this fall, housing prices are expected to fall sharply and fast, with foreclosures rising.