Homes Sales Lowest in 30 Years
According to the latest national housing market report, home sales have plummeted to their lowest level in three decades. The dismal figures mark a sharp decline from the busy spring season, when many homeowners were eager to list their properties in response to the coronavirus pandemic’s economic uncertainty.
The report, released by the nation’s largest professional real estate trade association, reveals that existing single-family home sales had dropped 29.5% from a year ago, with a total of 5.81 million homes sold, the lowest level since 1991.
Meanwhile, the median home price continued to rise, increasing 6.1% year-over-year to reach $299,000. This represents the 98th consecutive month of year-over-year price gains.
Experts attribute the sales decline to a combination of factors, including:
* Higher mortgage rates, which have increased 50 basis points since the beginning of the year, making it more expensive for buyers to purchase a home.
* Decreased affordability, as home prices outpace wage growth, limiting the number of potential buyers.
* Inventory woes, with the number of homes for sale falling 24.4% year-over-year, leading to intense competition for the available properties.
The report notes that while some regions have been more resilient to the downturn, others have been more severely impacted. The Midwest and Northeast regions, in particular, have seen significant declines, with sales down 31.1% and 34.8%, respectively.
In response to the market shift, real estate agents and property developers are adapting their strategies, emphasizing increased communication with potential buyers, improving online inventory, and targeting potential customers who may be hesitant to enter the market.
As the housing market continues to evolve, it remains a tumultuous time for buyers, sellers, and agents alike. Professionals in the industry are closely monitoring market trends, looking for signs of a rebound or potential bottoming out of the cycle.
