More Homes Are For Sale But People Aren’t Buying | Global News Avenue

In the real estate market, more real estate is being sold, which has been clamoring for more inventory, but rising mortgage rates and continued high prices are still keeping buyers away.

Existing home sales in January fell from 4.9% December levelAccording to the National Association of Realtors (NAR). This is less sales than economists expected Wall Street Journal and Dow Jones News.

Sales fell despite more homes in the market. Inventory rose 3.5% from last month, while 1.18 million available units sold 16.8% higher than the same period last year.

But while inventory is improving, mortgage rates and house prices are not. The median price of existing homes has risen nearly 5% from the same period last year to $396,900. Mortgage Rate Hover around a level that is less than 7% higher in history.

“More housing supply allows qualified buyers to enter the market,” said Lawrence Yun, chief economist at NAR. “But for many consumers, they buy other homes or become first-time homeowners are Necessary inventory and lower mortgage rates.”

The housing market is in a ruthless situation

This is the first time sales have slowed in four months, leading some economists to ask if the housing market momentum is slowing.

“Potential buyers are reluctant to buy in the rising mortgage rates and the poorest affordability in decades,” wrote Priscilla Thiagamoorthy, senior economist at BMO. “And if possible sellers are reluctant to give up the favorable mortgage clauses obtained at the bottom of the rock during the pandemic.”

Other indicators also point to a slow housing market, including similar declines in sales of home sales and mortgages with lower mortgage volumes. Economists say house prices and mortgage rates are unlikely to drop anytime soon.

Nancy Vanden Houten, an American economist at Oxford Economics, said: “The increase in supply may keep sales consistent, but we won’t expect it unless the price changes significantly, many Buyers will continue to be priced.”