Summary: Sales of existing homes in the US dropped for the fourth consecutive month in September due to surging mortgage rates and limited supply. Despite the slump, home prices continued to rise. The national median sales price increased by 2.8% compared to last year.
Sales of previously occupied homes in the US fell by 2% in September, marking the fourth consecutive month of decline, according to the National Association of Realtors. The housing market slump can be attributed to surging mortgage rates and a shortage of available properties. Compared to the same month last year, home sales have decreased by 15.4%. The national median sales price, however, increased by 2.8% to $394,300 from September last year.
Lawrence Yun, the chief economist at the National Association of Realtors, stated that the limited inventory and rising mortgage rates are the main factors impacting the home sales market.
Mortgage rates have soared above 7% since August, resulting in higher costs for borrowers and reducing their affordability in an already competitive market. Rock-bottom rates from two years ago have also deterred homeowners from selling. The supply of homes for sale remains low, with just a 3.4-month supply available, compared to a balanced market which usually has a 4 to 5-month supply. Despite these challenges, homes sold quickly, typically within 21 days of being listed, and around 26% of homes sold for more than their list price.
Tags: US home sales, mortgage rates, housing market, limited supply, home prices