US home sales on pace for the worst year since 1993
US homepace for the worst year since slumped in October and prices continued to climb.
Those factors kept homebuyers away from the market, according to the National Association of Realtors’ monthly report released Tuesday.
Sales of homes remained at 13-year lows as buyers competed for a limited number of houses on the market and prices continued to rise. Price increases combined with a 30-year fixed rate mortgage nearing 8% in October have created the most unaffordable market in decades.
Last month, the median price for existing homes rose to $391,800, which includes single-family homes, townhomes, condominiums, and co-ops. As a result, prices were up 3.4% from a year ago, marking the fourth consecutive month of year-over-year increases. According to NAR, prices rose in all four regions of the country, the Northeast, the Midwest, the South, and the West.
Home sales fell to 3.79 million seasonally adjusted annualized, a 4.1% decline from September and a 14.6% drop from a year ago, according to the report. The number of units sold fell short of analysts’ expectations of 3.9 million. In the Northeast, South, and West, home sales fell from last month, but in the Midwest, they remained unchanged.
US homepace buyers experienced another difficult month due to a lack of housing inventory and the highest mortgage rates in a generation,” said Lawrence Yun, NAR’s chief economist. Despite price concessions at the upper end of the market, multiple offers are still occurring, especially on starter and mid-priced homes.”
There were bidding wars among would-be buyers in October as 28% of homes sold over listing prices.
In October, 24% of home buyers waived home inspections, up from 20% last year; 21% waived appraisal contingencies, down from 18% last year.