Existing home sales dropped in September to 13-year low as surging prices and mortgage rates stymie demand | CNN Business

October 23, 2023October 22, 2023 ~ knjohn ~ Leave a comment

Home sales dropped in September to the lowest level since the foreclosure crisis as surging interest rates and climbing home prices made buying a home unattainable for a growing share of would-be buyers.

Historically low inventory of homes for sale continued to push prices up and rates that crossed over 7% in August have pulled sales down to their lowest level in 13 years, according to a monthly report from the National Association of Realtors.

The median price for existing homes — which include single-family homes, townhomes, condominiums and co-ops — was $394,300 last month. That was up 2.8% from a year ago and marked the third consecutive month of year-over-year price increases, setting a record high price for homes in September. Prices rose in all four regions of the country, the Northeast, Midwest, South and the West, the NAR report found.

Is the Real Estate Housing Market Crashing? | Entrepreneur

August 12, 2022August 11, 2022 ~ knjohn ~ Leave a comment

The housing market is shifting, and faster than builders and sellers can adapt.

During the pandemic, low mortgage rates and increased demand led to a surge in the housing market, causing prices to soar and competition to rise. However, the tight market led to sky-high prices and an eventual rise in mortgage rates, which ultimately priced out millions of would-be buyers. Now, builders are faced with an excess of unsold homes, Bloomberg reported.

The once nationwide housing shortage — coupled with the boom brought on by the pandemic — pushed the market to a pressure point. Home prices rose by 20.6% year-over-year in March of 2022, marking the largest increase in the 30 years of record-keeping, according to the Joint Center for Housing Studies tabulations of CoStar and CoreLogic Case-Shiller Home Price Indices data.

5 signs the housing market is starting to slow down | CNN

June 21, 2022June 20, 2022 ~ knjohn ~ Leave a comment

There is a shift happening in the housing market.

After more than a year of soaring demand, exploding home prices and increasing real estate sales, the market finally seems to be cooling off.

“The housing market isn’t crashing, but it is experiencing a hangover as it comes down from an unsustainable high,” said Taylor Marr, Redfin deputy chief economist.

Mortgage rates have increased more than two and a half percentage points this year. And the higher costs of financing a home have changed the calculations for many would-be homebuyers. As a result, year-over-year home sales have been dropping in recent months.

In a Fannie Mae survey on homebuyer sentiment, a record 79% of respondents said it’s a bad time to buy a home.