Decline in Existing Home Sales Amid Market Changes

In recent months, there has been a noticeable decline in existing home sales in the United States, hitting the lowest level in nearly 30 years. Specifically, August 2023 saw a further drop in sales measured on an annual basis, tracking a worsening market condition.

According to the National Association of Realtors (NAR), existing home sales in August fell by 0.7% compared to the previous month, with total sales amounting to 4.07 million units. This marks the lowest figure since January 1995. The reasons for this decline are tied to high mortgage interest rates, which, according to Freddie Mac, have reached 7.18%. This compels potential buyers to shy away from transactions, as available offers become less appealing.

Analysts are focusing on the fact that the lack of enough new listings in the market is also exacerbating the situation. This leads to an even greater housing shortage felt across many regions' economies. Lower volumes of new construction, coupled with rising loan rates, create a challenging picture for ordinary buyers, who find themselves awaiting more favorable conditions for purchasing new properties.

Moreover, there is a growing number of renters looking to avoid home buying under current conditions. Many of them prefer to continue renting in hopes that the market situation will change, and interest rates will drop in the future. Nevertheless, experts predict further changes, especially amid potential improvements in the economy and housing construction.

In conclusion, the current situation in the existing home market raises many questions and concerns for both buyers and sellers. In the future, it is essential to anticipate the possibility of changes in the economic landscape, which may lead to an improvement in the real estate market.

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