Redfin reports the home market may be slowing with 5% of sellers dropping their prices in recent weeks.

"The housing market is less hectic than it was in early spring, but it's still far from typical. The move to a less imbalanced market is happening slowly," said Redfin Chief Economist Daryl Fairweather. "As we approach the beginning of back-to-school season, home prices typically cool, supply winds down, and homes take longer to sell. All that's happening, just very slowly. I don't think the housing market will return to a fully typical state anytime soon, but we are starting to trend in that direction."

In its report, the online brokerage noted while home prices are still rising and homes are selling very quickly, a slowdown is surfacing. Redfin added some home sellers who are optimistic about the price they can get are seeing a week or two go by without any bids and scaling back the ask.