US Real Estate Market in Crisis: Home Sales Plummet to 13-Year Low in September

The US real estate market is in crisis as existing home sales hit a 13-year low in September. Discover the significant decrease and ongoing inventory crunch in the housing market.

Existing home sales continued to decline in September, adding to the ongoing inventory crunch in the housing market. The latest report from the National Association of Realtors revealed that closed deals on existing homes dropped by 2% last month, marking a significant 15.4% decrease compared to the same period last year. This is an alarming trend, as September saw the first time since October 2010 that existing home sales fell below the 4 million threshold.

US Real Estate Market in Crisis: Home Sales Plummet to 13-Year Low in September | ogusyis

Danielle Hale, chief economist at Realtor.com, drew attention to the fact that the seasonally adjusted annual rate of existing home sales in September stood at 3.96 million. This decline has persisted for the seventh consecutive month in 2022, with February and May being the only exceptions when existing home sales showed slight improvement over the previous month.

Simultaneously, the median sale price for existing homes dropped from $407,100 in August to $394,300 in September. However, on an annual basis, prices demonstrated a 2.8% increase when compared to the $383,500 median in September 2022. Inventory levels followed a reverse pattern, showing a 2.7% increase from the previous month but an overall decrease of over 8% compared to the previous year.

Economists have identified persistently high mortgage rates and low affordability as major factors contributing to the decline in existing home sales. These obstacles have made it increasingly difficult for potential buyers to enter the housing market, resulting in a decline in demand and sales.

In conclusion, the existing home sales market experienced yet another decline in September. With closed deals on existing homes sliding by 2% and a significant 15.4% decrease from the previous year, the current inventory crunch is a cause for concern. The dip in sales, accompanied by a decrease in median sale prices and a shortage in inventory, paints a challenging landscape for both sellers and buyers alike. The persistently high mortgage rates and low affordability continue to hinder the recovery of the housing market.