Home Sales Tumble to 13 Year Low

November 30, 2023

Sales of existing homes in the United States fell to their lowest level since 2010, as high mortgage rates continue to keep would-be buyers away from the housing market.
 
Reuters reported that the latest statistics from the National Association of Realtors (NAR) showed that home sales in October fell by 4.1% from the previous month and 14.6% compared to the same month last year. Unless there is any unexpected recovery in November and December, home sales remain on track to be the worst market since 1992. The latest home sales figures mean a seasonally adjusted rate of just 3.79 million units.
 
In the meantime, the number of homes for sale remains low leading to the highest median house price recorded for any October. According to the figures, there were 1.15 million previously owned homes on the market last month, compared to 2 million homes for sale before the pandemic. “The combination of high prices, high mortgage rates, and millions of homeowners unwilling to move, given they’ve locked in low rates, has frozen the market,” said Corporate Economist Robert Frick.
 
Lawrence Yun, Chief Economist at the NAR told reporters that real estate professionals will be appealing to their representatives in the U.S. Congress for a government tax incentive for homeowners to encourage them to put their houses on the market.