Summary
Home sales in the U.S. dropped significantly in January, continuing a slowing trend from the previous year. Experts worry about a potential new housing crisis due to high prices, elevated borrowing costs, and decreasing consumer confidence. Despite the challenges, some experts are optimistic that buyers may see improved conditions in the coming months.
Key Facts
- Home sales across the U.S. fell 8.4% in January compared to December.
- Sales decreased 4.4% from the same time last year.
- The largest sales decline was in the Western U.S., where sales dropped 10.3%.
- The U.S. Federal Reserve raised interest rates in 2022 to fight inflation, making mortgages more expensive.
- High home prices and high borrowing costs have slowed the housing market.
- Nationwide inventory increased by 3.4% year-over-year.
- A balanced market typically has a six-month supply; the current market has a 3.7-month supply.
- Home price growth is slowing, with the median price for existing homes at $396,800.
