Just under 4.1 million houses and apartments changed hands, at an annualized rate, a decline of 2.2%, a level below analysts’ expectations.
Home resales in the United States fell again in July, more than expected by the markets, but prices continued to rise, according to data released Tuesday by the National Federation of Realtors (NAR).
Just under 4.1 million houses and apartments changed hands, at an annualized rate, a decline of 2.2%, a level lower than analysts’ expectations who were counting on the resale of 4.15 million homes, according to the consensus published by briefing.com.
The median price, on the other hand, continued to rise, up 1.9% year on year, to reach $406,700, a level that remains historically high, being only the fourth month in which prices have exceeded the $400,000 mark.
However, they are down from June, which had a median price of $410,000.
“Two factors are preponderant for the volume of sales at present: the inventory available and the real estate rates”, recalled Lawrence Yun, the chief economist of the NAR, “unfortunately both are unfavorable to the buyers”.
Interest rates are now reaching 7.09% in the United States, for a 30-year fixed loan – the most common –, according to data from the real estate refinancing group Freddie Mac, their highest level since March 2002.
In question the increase in the rates of the Federal Reserve (Fed), which went from a range between 0% and 0.25% in March 2022 to that between 5.25% and 5.50% at its last meeting, end of July.
But mortgage rates are also suffering from the recent rise in bond rates, which last Thursday reached their highest level in 16 years, on the eve of the 2008 economic crisis.
The total number of properties for sale at the end of July was also 1.11 million units, up slightly from June but down 14.6% year on year. This represents 3.3 months of sales at the current rate.
But the lack of demand keeps properties on the market for a short time: as a general rule, these find a buyer in 20 days on average, while 74% of homes put on the market find a buyer in less than a month.
2023-08-22 15:01:52
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