Why are existing home sales falling in the US?

by Steve Randall on 22 Oct 2018

Sales of existing homes in the United States declined in September following a stagnant August.

The National Association of Realtors says that sales fell 3.4% month-over-month and 4.1% year-over-year to 5.37 million (SAAR).

Despite a slight rise in inventory it seems that buyers are cautious about rising mortgage rates and – even with improved choice of homes available – continued tight supply.

"There is a clear shift in the market with another month of rising inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory," said NAR chief economist Lawrence Yun. "Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year."

The median price of existing homes for all housing types was up 4.2% year-over-year in September and that means more pressure for first-time buyers, who made up a 32% share of buyers in September, still underwhelming.

"Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory," added Yun.

Post a Comment

Most Trending News

Fixed-rate mortgages have gone up, but it doesn’t matter

News of a fixed rate increase might inspire consumers driven by fear of being priced out of the market in Canada.

Read More
Post-COVID return to the office depends on where you live

Even before COVID-19 moved us all to work from home, reevaluations of office space were already underway, but not nearly to the extent they are now.

Read More
Millions in delayed closing compensation left unclaimed

This consultant and real estate investor said that a third of new construction properties built every year in Ontario have legitimate claims for reimbursement, but they aren't taken advantage of.

Read More