US existing home sales hit lowest level in over 16 years in October
US existing home sales fell 5.5% month-on-month in October to a seasonally adjusted annual rate of 3.75 million, the lowest in over 16 years, according to the National Association of Realtors. Inventory rose to a 5.1-month supply, the highest in about 11 years, as high mortgage rates and prices dete
The National Association of Realtors (NAR) reported that US existing home sales fell by 5.5 per cent month-on-month in October. On a seasonally adjusted annualised basis, sales totalled 3.75 million units, the lowest level in more than 16 years and below market expectations.
The data also showed that the inventory of existing homes rose 1.3 per cent month-on-month to an annualised rate of 1.59 million units, an increase of 4.6 per cent from a year earlier. At October's sales pace, it would take 5.1 months to fully absorb the current inventory, the longest period in about 11 years, compared with 4.7 months in September.
Analysts attributed the sluggish sales to rising mortgage interest rates and persistently high home prices, which have made potential buyers cautious. First-time buyers accounted for 29 per cent of total sales, a share analysts said needs to reach 40 per cent for the housing market to remain strong.