Home Uluslararası US: Used home sales at 2-year low

US: Used home sales at 2-year low

by olaynerde

US home sales released. The current home sales unit rate decreased by 2.7% in March compared to the previous month. This means that 12-month sales (unit rate) fell to 5.77 million in March, a decrease from February’s unit rate of 5.93 million.

If we look at the sub-items; The median home price continued to rise and hit $375.3k in March. The number of units available rose slightly to 0.95 million in March, from 0.85 million a month ago. With the slowing demand, the stock of existing houses that could not be sold rose to 950,000 by the end of March. This means an increase in monthly sales speed from 1.7 months to 2 months.

The housing market remains the backbone of the economy and is showing signs of premature cooling. With the 30-year mortgage rate exceeding 5 percent recently, the affordability of housing will decrease. Housing starts are well above sales and unsold stocks will soon slow new home builds as well. On the other hand, the high rate of increase in rents is still a serious source of inflation. At the source of inflation, the shift effect from goods inflation to services inflation will now point to more homogeneous increases. Like the cost and demand inflation duality, the goods and services inflation duality will also occur. In China, there is a market bottleneck created by declining demand and Covid restrictions. In the US, it manifests as a decrease in purchasing due to high inflation rates and mortgage rates.

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