2023-08-22 14:07:49
The National Association of Realtors (NAR) reported July resale home sales plunged to the lowest level of the year. Inventory shortages and rising borrowing costs weighed on the stock.
Key Point Resale home sales (seasonally adjusted) fell 2.2% month-on-month to 4.07 million units Annualized Economists’ median estimate of 4.15 million units
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 decline.
The combination of a shortage of pre-owned homes and rising borrowing costs has prompted prospective buyers to either turn to new homes or abandon their purchases.
“There are two things that drive the existing home market: inventory levels and mortgage rates.
Although the inventory of second-hand homes sold increased from the previous month to 1.11 million units, the total inventory in July was the lowest since 1999, when data are available. The ratio of inventory to sales 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-on-year to $406,700 (regarding ¥59.4 million).
See table for detailed statistics.
原題：US July Existing-Home Sales Fell 2.2% to 4.07m, Below Est.、US Existing-Home Sales Slide on Higher Rates, Lean Inventory(excerpt)
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