Sharp Decline in US Home Sales: Historical Low
According to the latest data, the pending home sales index in the US has dropped to its lowest level ever recorded. This indicator, viewed as a crucial gauge of the real estate market's health in the country, fell by 7.1% from the previous month and 24.2% year-over-year. The tightening of housing affordability, combined with rising mortgage rates, has adversely affected buyer demand, leading to such a significant decrease.
The data, provided by the National Association of Realtors (NAR), highlights that this decline in sales occurred amid market instability, where many potential buyers found themselves in difficult positions due to skyrocketing home prices and mounting financial burdens from mortgage loans. Over the past year, there has been a notable increase in mortgage rates, which further exacerbates the situation.
Experts suggest that this trend in the real estate market may not only be linked to high-interest rates but also to overall economic uncertainty, prompting people to postpone real estate purchase decisions. Moreover, decreases in rates are not anticipated in the near future, as the Federal Reserve continues to manage inflation, which also puts pressure on the housing market.
Thus, the current state of the real estate market raises serious concerns, and analysts predict that this trend may persist for the remainder of the year. Observing these changes, experts emphasize the importance of monitoring further actions from both buyers and sellers amidst the rapidly changing economic circumstances.
