President Biden’s policies of wasting American taxpayer dollars by the trillions now, overseas, is destroying the U.S> economy. Home are now out of reach by the majority of American families thanks to increasing rates and misguided spending from DC.
Sales of previously owned homes in the United States are currently at a 30-year low, showing minimal movement in May as housing prices reached record highs and mortgage rates continued to be elevated. According to the National Association of Realtors (NAR), the annualized rate of existing home sales in May was 4.11 million units, a slight 0.7% decrease from April and 2.8% down from the previous year. This stagnation reflects contracts likely signed in March and April, a period when mortgage rates saw a significant rise.
US home sales have fallen to historically low levels.
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The average rate on the 30-year fixed mortgage began April just below 7% and peaked over 7.5% by mid-April, though it did settle slightly in May, hovering around 7%. Lawrence Yun, the chief economist at NAR, expressed disappointment over the stalled recovery in home sales, noting that the anticipated spring rebound did not materialize.
Despite overall stagnant sales, the housing inventory experienced a notable increase in May, rising 6.7% from the previous month and 18.5% from May of the previous year. Currently, there is a 3.7-month supply of homes available at the current sales pace, which, while improved, is still considered low relative to demand and demographic trends. Yun predicts that this increase in inventory might eventually help boost sales and moderate the rapid price increases observed in recent months.
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The cost of buying a new house just hit a fresh record, even as mortgage rates dipped to the lowest level in three months, according to a new report.
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In terms of pricing, the median price for an existing home sold in May was $419,300, marking a new record high and representing a 5.8% increase from the previous year. This increase was the most significant since October 2022, with price gains recorded in all regions. The impact of rising home prices and mortgage rates has dramatically increased the cost of homeownership. A typical mortgage payment today is more than double what it was five years ago, exacerbated by a 50% increase in home prices over the same period.
The market dynamics vary significantly across different price segments. Sales of homes priced below $250,000 declined from the previous year, while those priced between $250,000 and $500,000 saw a modest 1% increase. The higher end of the market showed more substantial growth, with sales between $750,000 and $1 million rising by 13%, and those over $1 million increasing nearly 23%.
⚠️ JUST IN:
*U.S. HOME PRICES HIT A NEW ALL-TIME HIGH IN MAY
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Cash purchases remain prevalent, comprising 28% of total sales, indicating that wealthier buyers are still actively participating in the market. First-time buyers made up 31% of sales, a slight increase from 28% the previous year. Despite the challenging market conditions, homes that are well-priced and require minimal work continue to sell quickly, often going under contract in less than a month. However, homes that are overpriced or need significant updates are remaining on the market for longer periods, leading to an increase in stale listings.
Major Points:
- U.S. sales of previously owned homes reached a 30-year low in May, with the annualized rate at 4.11 million units, slightly down by 0.7% from April.
- The average rate on a 30-year fixed mortgage rose significantly in April, hovering around 7%, contributing to the sluggish pace of home sales.
- Home prices hit a new record in May with the median price at $419,300, up 5.8% from last year, marking the strongest gain since October 2022.
- Housing inventory saw a rise in May, increasing by 6.7% from the previous month and 18.5% year over year, offering a 3.7-month supply at the current sales rate.
- The housing market continues to be dominated by cash buyers and higher-end sales, with homes priced over $1 million seeing nearly a 23% increase in sales.
Benjamin Shapiro – Reprinted with permission of Whatfinger News
