US July Home Sales Down 6%... Six Consecutive Months of Decline

[Asia Economy New York=Special Correspondent Joselgina] The number of home sales in the United States has declined for six consecutive months, indicating a freezing market.

On the 18th (local time), according to the U.S. National Association of Realtors (NAR), existing home sales in July were recorded at 4.81 million units (annual rate), down 5.9% from the previous month. Compared to the same month last year, it plummeted by 20.2%. This figure also fell short of the expert forecast of 4.86 million units. The number of home sales in the U.S. continued to decline for six consecutive months.

Last month's sales volume was the lowest since November 2015, except for May 2020 when the housing market temporarily collapsed immediately after the COVID-19 outbreak. Bloomberg reported, "Compared to January this year, sales have decreased by 26%, marking the largest decline over a six-month period since 1999."

The cooling market also showed signs of slowing the soaring home prices. The median price of existing homes in July was $403,800 (approximately 535.04 million KRW), down $10,000 from the record high of $413,800 in June. Although it is 10.8% higher than the same month last year, it is the smallest increase since July 2020.

This market sentiment is due to the sharp rise in mortgage rates and weakened demand following the interest rate hikes that have continued since early this year. The 30-year fixed mortgage rate, which was around 3% at the beginning of the year, surpassed 6% at one point in June. It currently remains above 5%. Additionally, the high home prices themselves are also evaluated as a factor blocking demand inflow.

Lawrence Yun, Chief Economist at NAR, said, "We are witnessing a 'housing recession' in terms of declining sales and new construction." However, Economist Yun added, "It is not yet a recession in terms of home prices. Inventory is still scarce, and prices continue to rise nationwide."

This content was produced with the assistance of AI translation services.