Boston Condos for Sale and Apartments for Rent
Home sales that may spook you
(Getty; Illustration by Kevin Rebong for The Real Deal)
Existing home sales decreased in September, with rising mortgage rates as the key culprit behind the the eighth straight month of decline.
Home sales sunk 1.5 percent last month from August to a seasonally adjusted rate of 4.71 million, according to the National Association of Realtors. The figure marked a 23.8 percent drop year over year.
The median home price in September rose 8.4 percent year over year to $384,000.
What is causing the housing market to decrease?
The market’s continued contraction is in reaction to the Federal Reserve’s interest rate hikes, which preceded a spike in mortgage rates. The 30-year fixed mortgage rate surpassed 6 percent last month for the first time since 2008.
Lawrence Yun, chief economist at NAR, said the report signaled an ongoing “adjustment” in the housing market as mortgage rates hit 7%
Are national median home prices still rising?
Home price were not spooked, it rose year-over-year by 8.4 percent. It was the 127th month in a row prices increased annually, the longest-running increase streak on record.
What’s the status with nations housing supply?
Dwindling housing supply — down 2.3 percent from August — is also driving sales down, and prices up. It doesn’t look like increased inventory is on the horizon.
What’s the outlook for homebuilder sentiment?
Homebuilder sentiment is continuing its downward trend last month.
