According to the National Association of Realtors (NAR), US existing home sales have been declining for the eighth month in a row. The contraction in September 2022 was 1.5% compared to August and 23.8% compared to the first month of autumn last year.
Apartments and houses from owners rose by 8.4% to $ 384,800 for the year. On the other hand, the number of offers in the secondary market decreased by 2.3% compared to August.
“The housing sector continues to be subject to adjustment due to the continued rise in mortgage interest rates, which have exceeded 6% and are now approaching 7% with a loan term of 30 years,” said Lawrence Yun, chief economist of NAR. He also noted that there is a particularly strong decline in sales in regions with expensive real estate.
“Despite weaker sales, there is still demand, and due to lack of supply, more than a quarter of homes are being sold at a price higher than stated in the price list,” Yun added.
What do you think these price cuts will lead to? Let us know in the comments.