For the Tenth Consecutive Month, American Home Sales Decreased
On average, homes are selling 24 days after they go on the market; this figure is an increase compared to 21 days in October. Additionally, there has been a decrease in houses on the market over the past four months. As of November, 1.14 million homes were available for sale, translating to 3.3 months' worth of supply - a drop from October's 3.5-month rate.
These changes come as part of a larger trend toward fewer sales and rising house prices across many parts of the United States since May 2022, when analysts began to observe these trends taking effect. While some areas have experienced disproportionate drops or increases in their housing markets since then, many have seen a steady decline over those nine consecutive months. This can be attributed to the fact there have been increased rates on a mortgage, with the average mortgage being as high as 7.08% compared to January, when the rate for the same was 3%.
Furthermore, NAR Chief Economist Lawrence Yun says it is likely that "home prices will keep appreciating" throughout 2019 unless there is an influx of new listings or improvement in building permits to create more entry-level housing inventory for buyers and renters alike. The current lack of inventory has left many prospective buyers vying for fewer properties than ever before - particularly at lower price points where competition can be even steeper due to limited availability and higher demand among first-time homebuyers and those seeking more affordable rentals close to city centers and other desirable locations around the country.
Due to this persisting shortage of listings, many experts expect house appreciation in 2023 but not at quite as rapid a pace as was observed earlier this year when median existing home prices rose 6%. Analysts now anticipate slower but still steady growth throughout next year, which could help make up for some lost ground caused by higher mortgage rates compared to earlier periods, such as 2021, when rates were much lower on average than they are today and thus provided a boost to buying power among prospective purchasers who may now find themselves locked out due to affordability concerns or credit score requirements set by lenders following several years of financial tightening policies nationwide.
It is clear that American home sales are still decreasing after ten consecutive months despite attempts at intervention from various stakeholders involved - this trend is likely due to both high mortgage rates and rising home prices that are pushing potential buyers away while simultaneously creating unfavorable conditions for those already renting or owning property alike with little sign of respite given current economic conditions surrounding residential real estate markets nationwide.
