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Sales of previously owned homes in the United States fell 5.9% in July against the prior month, as more buyers shied away from increasing mortgage rates and soaring prices.
As per information from the National Association of Realtors, all our existing home deals drooped for the 6th consecutive month to an occasionally changed yearly rate of 4.81M, down from 5.11M in June. Financial experts had anticipated the figure to come in at 4.89M.
Sales were down by 20.2% compared to the same period last year, with all four major U.S. regions recording monthly declines.
The supply of homes also remained squeezed, with total housing inventory rising by 4.8% month-on-month to 1.31M units at the end of July.
At the current selling price, the unsold stock is 3.3 months.
Lawrence Yun, an economist at NAR, said, “The decline in sales continues to reflect the impact of the 6% rise in mortgage rates in June.”
According to Mortgage News Daily, the average rate on a 30-year mortgage has since fallen back to around 5.4%. Yun said this could encourage more home buyers in the short term.
But given that this percentage has only been over 2.5% in the past year, buyers still face high borrowing costs.
Meanwhile, the median existing-home price for all home types in June was $403,800, up 10.8% from July 2021. Prices are now up year over year—another for 125 consecutive months. In a row, draw the longest part of the file.
“We see the real estate market in terms of home sales and construction,” Yun said.
“But that’s not to say home prices haven’t come down. Prices continue to rise across the country due to a lack of inventory, and nearly 40% of homes remain vacant. On the full price list.”
Reference Source: Investing
