{"id":1746889,"date":"2022-11-21T06:05:02","date_gmt":"2022-11-21T11:05:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1746889"},"modified":"2022-11-21T12:03:16","modified_gmt":"2022-11-21T17:03:16","slug":"sales-of-previously-owned-homes-drop-for-ninth-month-straight-as-mortgage-increases-and-inventory-falls","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sales-of-previously-owned-homes-drop-for-ninth-month-straight-as-mortgage-increases-and-inventory-falls\/","title":{"rendered":"Sales of Previously Owned Homes Drop for Ninth Month Straight as Mortgage Increases and Inventory Falls"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsales-of-previously-owned-homes-drop-for-ninth-month-straight-as-mortgage-increases-and-inventory-falls%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1746889&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Existing-home sales declined for the ninth straight month in October, falling 5.9 percent from September, according to the\u00a0National Association of Realtors (NAR),\u00a0revealing the demand-dampening effects of higher interest rates amid decades-high inflation.<\/p>\n<p>Existing-home sales for October registered a seasonally adjusted annual rate of 4.43 million, a fall of 28.4 percent from 6.19 million in 2021. \u201cMore potential homebuyers were squeezed out from qualifying for a mortgage in October as <a href=\"https:\/\/www.theepochtimes.com\/t-mortgage-rates\">mortgage rates<\/a> climbed higher,\u201d said Lawrence Yun, the NAR\u2019s chief economist. \u201cThe impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.\u201d<\/p>\n<p>The average 30-year fixed-rate mortgage rate is 6.65 percent, as of Nov. 17, according to Mortgage News Daily, which is an increase of more than 105 percent from 3.24 percent in 2021. Less borrowing power due to interest-rate hikes combined with elevated home prices leads to lower home sales due to affordability issues.<\/p>\n<p>According to the NAR, the median sales price in October of previously owned homes rose to $379,100, an increase of 6.6 percent from 2021, while the unsold inventory dropped for the third consecutive month, to 1.22 million, indicating homebuilder pessimism. The current inventory is equivalent to 3.3 months\u2019 supply at the present sales pace.<\/p>\n<p>The NAHB\/Wells Fargo Housing Market Index (HMI), which measures homebuilder sentiment, declined five points, to 33, and registered the eleventh consecutive monthly decline. This is the index\u2019s lowest reading since June 2012, with the sole exception being the spring of 2020 during the COVID-19 outbreak.<\/p>\n<p>The NAR numbers included single-family homes, townhomes, condominiums and co-ops, and registered a month-over-month and year-over-year fall in all four major U.S. regions.<\/p>\n<h2>US Home Inventory Shortages<\/h2>\n<p>The housing inventory of\u00a01.22 million units registered at the end of October was down 0.8 percent from the prior month and 1.23 million in 2021. There was a 3.1 months\u2019 supply of homes in September, which has gone up to 3.3 months in October.<\/p>\n<p>\u201cInventory levels are still tight, which is why some homes for sale are still receiving multiple offers,\u201d Yun said. \u201cIn October, 24 percent of homes received over the asking price. Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8 percent.\u201d<\/p>\n<p>With first-time buyers accounting for 28 percent of sales in October, properties remained on the market for 21 days on average during the month. The number has gone up from 19 in September and 18 last year.<\/p>\n<p>All-cash sales, many of whom are individual investors or second-homebuyers, made up 26 percent of October\u2019s transactions, up from 26 percent in September.<\/p>\n<p>\u201cMortgage rates have come down since peaking in mid-November, so home sales may be close to reaching the bottom in the current housing cycle,\u201d Yun said.<\/p>\n<p>Meanwhile, the 12-month Consumer Price Index (CPI), a measure of annual inflation, fell to 7.7 percent in October from 8.2 percent in September. An analysis by Morning Consult suggests that the core CPI inflation is likely to rise in November following the October decline.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-naveen-athrappully\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/NaveenAthrappully.jpg\" alt=\"Naveen Athrappully\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Existing-home sales declined for the ninth straight month in October, falling 5.9 percent from September, according to the\u00a0National Association of Realtors (NAR),\u00a0revealing the demand-dampening effects of higher interest rates amid<\/p>\n","protected":false},"author":1,"featured_media":1695609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1746889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1746889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1746889"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1746889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695609"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1746889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1746889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1746889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}