Residential home sales plummeted 30% in July from June, according to the RE/MAX National Housing Report, which provides an early reading of actual closings.
Sales have entered a "period of correction" with the passing of the homebuyer tax credit, said RE/MAX chief executive Margaret Kelly.
"It's hard to know what will come next in this market, but we're looking for a return to slow steady growth by the end of the year," she said.
The Denver-based realty company tracks home sales in 54 metropolitan areas. Despite the drop in sales, RE/MAX reported the median house prices edged down only 0.5% month over month.
The National Association of Realtors issues its report on July existing home sales next week.
In its last report, NAR reported that June existing home sales fell 5.1% from the previous month. RE/MAX reported that June sales were up 7.2% from May.
