US Home Sales Hit Record Low as Pending Deals Decline
According to the latest data, home sales in the United States fell to a record low in January 2023, reflecting the ongoing impact of rising mortgage rates and high inflation. Market research indicates that the number of pending home sales dropped by 9% compared to the previous year, marking the lowest level since record-keeping began. Real estate experts point out that continuing economic stress is putting pressure on consumers, which in turn affects housing demand.
Rising mortgage rates present a significant hurdle for potential buyers, leading to increased uncertainty in the market. Many consumers are opting to postpone their home-buying plans, while final sales are also declining. Despite some positive signs in the job market, such as increased employment, economic uncertainty continues to influence people’s decisions regarding home purchases.
Experts predict that the housing market will remain under pressure in the coming months as high bank interest rates and fluctuating inflation continue to impact the financial wellbeing of homeowners and potential buyers. Consequently, many expect that the housing market will remain challenging this year.
Analyzing the current situation, experts emphasize the need for new measures to stimulate the housing market. They highlight the importance of creating more affordable lending products and enhancing infrastructure to attract buyers to the housing market.
Thus, against the backdrop of declining sales volumes and continuing high prices and interest rates, the US housing market is facing significant challenges. There is hope that over time the market can recover and offer more favorable conditions for homebuyers.
