Los Angeles – Since last September, the sales of already occupied American houses slipped at the slowesty in June as hostage rates increased and unprecedented levels in national average sales prices were killed.
The National Association of Realters said on Wednesday that the sale of the current house fell 2.7% from May to May from May to 3.93 million units to the annual annual rate.
Sales were flat compared to June last year. According to the factset, the latest house sales were reduced by 4.01 million pace economists.
Home prices increased on an annual basis for 24 consecutive months. The national average selling price rose 2% to $ 435,300 a year ago in June, which was an all -time high.
The US Housing Market has been in a recession since the beginning of 2022, when the hostage rates started climbing with the climb of the epidemic. Home sales fell to its lowest level in nearly 30 years last year.
A decrease due to dull house sales caused a spring homebuying season, traditionally the busiest period of the year for the housing market.
Stubbornly high mortgage rates and rising prices have accelerated difficulties for homebuilders, which were already pummailed by a real estate market that became heated during the epidemics. And while the number of houses on the market has increased rapidly since a year ago, it remains well below normal levels, meaning that prices continue to rise even when sales are slow.
NAR Chief Economist Lawrence Yun said, “The second half of the year really depends on what happens with hostage rates.”
High mortgage rates can add hundreds of dollars per month to borrowers, limiting their purchasing power. According to hostage buyer Freddy Mac, the average rate on 30 years of mortgage so far this year is close to 7%.
The possibility of houses purchased last month went under contract in May and June, when the average rate on a 30 -year mortgage ranged from 6.76% to 6.89%.
It is estimated that if the average rate falls up to 6% on a 30 -year mortgage, the additional will be sold to about half a million more houses.
“If the hostage rate is stuck at this stage, we are essentially seeing very little changes in the sale of our house and the price of the house, but if the mortgage rate was to be dropped, we know that there will be a more meaningful increase in sales,” he said.
The lack of power of the housing market is putting homebuits on the sideline for the first time. NAR said that they took 30% of the sales of homes last month, unchanged from May, NAR said. Historically, he created 40% of the sale of the house.
Home Shoppers who can buy at current mortgage rates or pay in cash are benefiting from more properties on the market.
At the end of last month, there were 1.53 million unusold houses, below May 0.6% from May, but up to 16% from June last year, NAR said. However, it is below about 2 million houses for sale which was specific before the epidemic.
The month-end inventory of June translates to the current sales speed of 4.7 months at the speed, which is at a speed of 4.6 months in May and 4 months in June last year. Traditionally, a supply of 5- to 6 months is considered a balanced market between buyers and vendors.
The house for sale is staying on the market for a long time as the sale remains in doldrum. NAR said that it was generally in the market for 27 days for 22 days last year for 22 days last month.
The recession of the housing market is not all bad, if you are a home shopkeeper who can spend to buy. In June, some of the 20.7% houses listed for sale were reduced, the highest part for the month of June was going back to minimal 2016, according to realtor.com.
Fast, however, many vendors are choosing to pull their home from the market instead of low prices. According to realtor.com, the number of properties taken away from the market without selling 47% in May a year ago.
