Sales of resale homes in July reached their lowest point this year, according to a report by the National Association of Realtors (NAR). The decline can be attributed to a scarcity of available listings and increasing borrowing costs, which have had a negative impact on the market.
Key Points:
– Seasonally adjusted data shows that sales of resale homes dropped by 2.2% compared to the previous month, reaching a total of 4.07 million units.
– Economists had predicted a median estimate of 4.15 million units for last month, while the actual figure of 4.16 million units represents an 18% decrease from the previous year (adjusted seasonally).
The escalating mortgage rates over the past years have made homeowners reluctant to sell their properties. Furthermore, the asking prices for homes remain high. Presently, the average 30-year fixed rate stands above 7%, the highest it has been in over two decades. This indicates that the demand for homes will likely continue to decline.
Due to the combination of limited availability of pre-owned homes and rising borrowing costs, potential buyers are either turning towards new homes or abandoning their plans to buy altogether.
“Two factors are currently influencing the housing market: inventory levels and mortgage rates,” stated a representative from NAR.
Despite a slight increase in the number of sold pre-owned homes from the previous month, totaling 1.11 million units, the overall inventory in July was at its lowest point since data has been available since 1999. The inventory-to-sales ratio currently stands at 3.3 months, with a ratio below five months considered indicative of a tight market.
Prices for pre-owned homes, before seasonal adjustment, have risen by 1.9% year-over-year, reaching a median price of $406,700 (approximately ¥59.4 million).
Please refer to the table below for more detailed statistics on the subject.
Source: July US Existing Home Sales fell 2.2% to 4.07m, Below Est. Premium US Existing Home Sales Slide, Prudential List.
The National Association of Realtors (NAR) reported that sales of resale homes in July fell to the lowest level of the year. A shortage of listings and rising borrowing costs weighed on the stock.
Key Points Resale home sales (seasonally adjusted) fell 2.2% month-on-month to 4.07 million units Economists’ annual median estimate of 4.15 million units last month was 4.16 million units year-on-year (adjusted seasonally adjusted) down more than 18% year-on-year (irrationally adjusted)
Mortgage rates have more than doubled in recent years, making homeowners less willing to sell their homes. The asking price remains high. Currently, the average 30-year fixed rate is well above 7%, the highest level in more than 20 years. This suggests that demand will continue to fall.
The combination of a shortage of pre-owned homes and rising borrowing costs has prompted potential buyers to either turn to new homes or abandon their purchases.
“Two things are driving the current housing market: inventory levels and mortgage rates.
Although the inventory of used homes sold increased from the previous month to 1.11 million units, the total inventory in July was the lowest since 1999, when data was available. The inventory to sales ratio is 3.3 months. Inventories are considered tight when the ratio falls below five months.
Pre-owned home prices (before seasonal adjustment, median) rose 1.9% year over year to $406,700 (about ¥59.4 million).
See the table for detailed statistics.
原題: July US Existing Home Sales fell 2.2% to 4.07m, Below Est. 、Premium US Existing Home Sales Slide, Prudential List (抜粋）
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