Existing-home prices in the United States fell by the most in more than 11 years last month, as increasing interest rates continued.
Higher Interest Rates Hit Home Prices Again: US Interest Rates, According to the National Association of Realtors, the national median existing-home price declined 3.1% year on year in May
The housing market has slowed in the last year and a half as mortgage rates have driven many purchasers out of the market and urged homeowners with low mortgage rates to stay put. Since the beginning of 2022, existing-home sales have dropped by around one-third.
Following a period of rising property prices caused by the pandemic, the housing market has stabilised into a period of dropping prices.
US Interest Rates
Nonetheless, several economists predicted that the losses would be worse. However, the number of available properties on the market remains limited, preventing property prices from falling much. Bidding wars are still widespread in some regions of the country owing
“Stable mortgage rates are leading to stable home sales,” said Lawrence Yun, chief economist of the National Association of Realtors. “Despite the sales slump, this is still a fast-moving market.”
Economists polled by The Wall Street Journal before of the report predicted that sales of previously owned houses declined 0.7% in May compared to the previous month.
The slowing housing market is one of the most significant ways that the Federal Reserve’s attempts to combat inflation by raising interest rates have impacted consumers. The Fed held interest rates steady this month, but Chair Jerome Powell stated on Wednesday
Because many families choose to relocate during the summer before the start of the new school year, the spring is often the busiest season for house sales. US Interest Rates, According to NAR US Interest Rates, existing-home sales.
In May, the Drehers made an offer that was accepted for less than the asking amount on a four-bedroom property that had been on the market since February.
“There was not any competition, which gave us a lot of leverage,” said Dreher. US Interest Rates; According to real-estate firm Redfin, median home-sale prices in Austin, Texas, decreased 15.1% from a year ago, followed by Boise, Idaho, down 14.3%, and Oakland.
According to NAR, the average property sold in May was on the market for 18 days, up from 16 days the previous year. US Interest Rates, According to the National Association of Realtors, there were 1.08 million houses for sale or under contract at the end of May.
According to Realtor.com, the number of new listings plummeted 23% year on year in May
They eventually had an offer accepted on a four-bedroom property in Westford, Massachusetts, for 10% more than the asking price. The transaction was completed in May.
“We’re very happy with it,” added Hartnett. However, “it was not the best time to buy, that’s for sure.”
In May, the market’s percentage of buyers who were first-time buyers was 28%, up from 27% the previous year. US Interest Rates According to NAR, around 25% of May existing-home purchases were paid in cash, which is unchanged from the same month a year earlier.
US Interest Rates The Commerce Department reported this week that housing starts, a gauge of home construction in the United States, increased 22% in May compared to April. Residential permits, which may be a leading indicator.