Existing home sales in the US hit 13-year low

Posted on November 24, 2023   |  

Home sales in the US took a significant hit in October, mainly due to the highest mortgage rates in two decades and a shortage of available houses for buyers.

The median house price reached an all-time high for October, suggesting a tough market for potential homebuyers. 

Unless a turnaround in November and December 2023, we could see the worst home resale performance since 1992.

In October, existing home sales fell by 4.1%, reaching a yearly rate of 3.79 million units. 

This is the lowest level since August 2010, following the end of a government tax credit for homebuyers.

The decline in sales is linked to the surge in mortgage rates, with the average rate on a 30-year fixed-rate mortgage hitting levels last seen in late 2000.

Regional variations were noticeable, with declines in home sales in the Northeast, West, and South. 

However, sales remained unchanged in the Midwest, known as the most affordable region.

Home resales in October dropped by 14.6% compared to the same period last year. 

The average rate for a 30-year fixed-rate mortgage was 7.31% in late September, peaking at 7.79% in October, the highest level since November 2000.