In the United States, the home sales volume is the lowest it has been in 13 years. And unless there is a stellar rebound in November and December, this year’s resale numbers will be the worst since 1992. This article breaks down the factors affecting the current American housing market…
At the end of October 2023, there were some eye-opening statistics reported about the U.S. housing market…
The existing home sales volume dropped 4.1% from the month prior…
The inventory of homes put on the market is declining 5.7% year-to-year…
On top of all that, the average price to buy is climbing — the current median cost is $391,800!
SO, WHAT IS GOING ON BASED ON THIS DATA?
Well, the situation is not complicated. But, there is the possibility of complicated consequences…
U.S. Home Sales Volume Is The Result Of A “Frozen Market”
Unlike the current Hong Kong real estate market, America does not have a shortage of buyers. In fact, it’s quite the opposite…
U.S. HOMEOWNERS ARE UNWILLING TO MOVE!
The reluctance to sell is likely because the United States is seeing the highest mortgage rates in 20 years. As a result, people are staying where they are with locked-in lower rates.
Economist for the Navy Federal Credit Union, Robert Frick, commented on the low home sales volume:
“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.”
Additionally, this “frozen market” could be even colder than the reports show…
The sale of an existing home is not “counted” until a contract closes. So, October’s statistics are potentially boosted by deals from prior months.
If this trend continues, the affordability of buying a home will become more difficult. Stayed tunes as we continue to follow the story.
Be Great,
GCTV Staff
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