US Home Sales Decline for 9 Consecutive Months...Longest Streak on Record

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The monthly number of home sales in the United States has declined for nine consecutive months, marking the longest decrease on record.

The National Association of Realtors (NAR) announced on the 18th (local time) that the number of existing home sales in October fell 5.9% from the previous month to 4.43 million units. Home sales have been declining since February, the longest streak since related statistics began in 1999.

Last month's sales matched expert forecasts compiled by Bloomberg and represented the lowest level since May 2020. Excluding the initial lockdown period of the COVID-19 pandemic, it is the lowest since December 2011. Compared to the same month last year, October sales plummeted by 28.4%.

Home prices have also continued to weaken. The median price of existing homes sold in October was $379,100 (approximately 509.13 million KRW), marking four consecutive months of decline since July. Although prices rose 6.6% compared to a year ago, the rate of increase has slowed for five consecutive months.

This is interpreted as a consequence of the Federal Reserve's aggressive tightening, which caused mortgage rates to surge and confirmed signals of economic slowdown, leading to cooling signs in the housing market.

Lawrence Yun, NAR Chief Economist, said, "As mortgage rates rise, many potential buyers are unable to secure loans," adding, "The impact is greater in expensive areas where home prices have risen significantly in recent years."

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