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US home sales fall as average price reaches $400,000 – Omaha, Nebraska

Omaha, Nebraska 2022-06-25 11:39:16 –

Washington DC: Existing home sales in the US for two years as average home prices surged to a record high of $ 400,000 for the first time, mortgage rates rose further in May, and entry-level buyers were kicked out of the market. Has decreased to. low.

This week, the National Association of Real Estate Agents said the housing market has been fairly strong, despite four consecutive months of declines in sales and affordable prices, with real estate usually remaining at a record low of 16 days. I reported that. Prices may remain high as supplies are still low, but sellers are lowering prices in areas with bid wars.

“Existing home sales should continue to slow throughout the year as mortgage rates rise, but unless there is a serious and sustained recession, home sales shouldn’t fall like a home bubble. Average. And move higher. “

Last month, existing home sales fell 3.4% to seasonally adjusted annual rates of 5.41 million units. This is the lowest level since June 2020, when it was recovering from the blockade of COVID-19. Sales increased in the northeast, but decreased in the Midwest, West, and densely populated South.

According to economists surveyed by Reuters, unit sales will drop to 5.4 million, and the downturn in the housing market will require sales to drop from 4 million to 4.5 million.

Home resale, which accounts for the majority of US home sales, fell 8.6% year-on-year last month.

In May, sales were nearly closed on contracts signed in the past 1-2 months, before mortgage rates began to accelerate amid rising inflation and the Federal Reserve’s rate hikes.

According to data from Freddie Mac, a mortgage lender released last week, the average contract rate for 30-year fixed-rate mortgages rose 55 basis points to a 2013-and-a-half high of 5.78%, the highest in a week. .. It has increased since 1987 and has increased rapidly by more than 250 basis points since January.

US home sales fall as average price reaches $400,000 Source link US home sales fall as average price reaches $400,000

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