High interest rates and home prices have dropped home sales to a 13-year low.
Driving the news: The National Association of Realtors announced Tuesday that existing-home sales decreased 4.1 percent in October from the month before to a seasonally adjusted annual rate of 3.79 million.
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- That is the lowest rate the nation has experienced since August 2010.
- Existing-home sales make up most of the housing market.
- Year-over-year home sales dropped 14.6 percent as they draw near to 2010 levels.
The big picture: While the demand to purchase a home has slipped in recent months, inventory remains low as high rates are keeping people in their current homes.
- Inventory dropped 5.7 percent year-over-year, although it did rise 1.8 percent from September.
- Mortgage rates are averaging 7.44 percent compared to 6.61 percent last year.
- The national median existing-home price rose to $391,800 in October, a 3.4 increase from the previous year.
What they’re saying: “Prospective home buyers experienced another difficult month due to the persistent lack of housing inventory and the highest mortgage rates in a generation,” Lawrence Yun, the National Association of Realtors chief economist, said in a press release. “Fortunately, mortgage rates have fallen for the third straight week, stirring up buying interest,” Yun added. “Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales.”
