2023-11-21 15:04:03
Washington (awp/afp) – The still high interest rates on real estate loans coupled with a rise in prices in the United States continue to weigh on resales of houses and apartments in October, which continue to decline, to the lowest since October 2010.
Last month, 3.79 million homes changed ownership, at an annualized rate – that is to say a projection of sales over the year at this rate -, according to data published Tuesday by the National Federation of Agents real estate (NAR).
This represents a drop of 4.1% compared to the previous minimum and a decline of 14.6% over one year. This is also the eighth month of decline in a row.
The drop is also greater than expected, analysts having expected 3.90 million homes sold, according to the consensus published by briefing.com.
“Potential buyers faced another difficult month, between the continued limited number of properties for sale and the highest interest rates in a generation,” recalled NAR chief economist Lawrence Yun, quoted in the press release.
The number of available homes remains low, with 1.15 million houses and apartments on the market at the end of October, the equivalent of 3.6 months of sales at the current rate. However, this is a slight increase compared to August (+1.8%).
Prices also continue to increase, by 3.4% over one year, to reach $391,800, the fourth consecutive month of increase at an annual rate.
“Even if market conditions remain difficult, sellers are doing well as prices continue to increase, to the point of reaching their record for the month of October. An average owner has accumulated more than $100,000 in assets on the last three years” thanks to price increases, Mr. Yun said.
The American Central Bank (Fed) has been trying since June 2022 to slow the pace of inflation by sharply increasing its key rate to bring it to a range between 5.25 and 5.50%, following eleven increases since March 2022. .
This leads banks to increase the interest rates on the loans they offer to their customers, both households and businesses.
Interest rates on home loans are now at their highest since 2000, at 7.44% for a 30-year fixed rate loan, the most common, according to November 16 data from refinancing agency Freddie Mac.
The next Fed meeting, the last of the year, will take place on December 12-13. During the previous two it had kept its main key rate unchanged.
afp/ib
1700589923
#USA #volume #housing #resales #continues #decline #October #November #p.m