US Existing Home Sales Hit Lowest Level Since 2010
The National Association of Realtors reports existing home sales fell 5.5% in October as surging mortgage rates drive the slowest sales pace in 16 years.
Existing home sales in the United States fell 5.5% in October from September, reaching a seasonally adjusted annual rate of 3.75 million units. According to the National Association of Realtors, this represents the slowest sales pace since August 2010 and an 8.8% decline compared to October of the previous year.
The slump is driven by mortgage rates hovering above 7%, with Freddie Mac reporting the average 30-year fixed-rate mortgage reached 7.33% in October. Market volatility was further influenced by inflation and the start of a war between the United States and Iran in late February, which increased oil prices. Consequently, first-time buyers now account for only 29% of purchases, significantly below the historical average of 40%.
Despite the drop in transaction volume, the U.S. median sales price rose 0.4% year-over-year to $416,700, marking the 40th consecutive monthly increase. Single-family sales declined across the Midwest, South, and West, while remaining flat in the Northeast. Inventory increased slightly to 1.59 million units, providing a 5.1-month supply for buyers. The report notes that most homeowners remain in a comfortable financial position due to accumulated housing wealth.
