Home sales fell to a 30-year low in 2024. Astronomical rates and high mortgage interest bother buyers – Location point.
According to the National Real Estate Association, in 2024, sales of previously owned homes, which make up the majority of the market in the United States, will be 4.06 million. This is the lowest level since 1995 and the lowest level since 2023, CNN said.
US home sales at lowest level since 1995
The median home price in the US has grown over the past 18 months, reaching a record high of $407,500. This, in turn, affected the lowest level of sales in three decades – the portal wrote.
It is not enough in the US, according to estimates by Freddie MAC institutions, with guarantees on mortgage loans, which are 3.7 million homes in the US.
As explained by the CNN station, one of the main reasons for the insufficient supply is the foreclosure actions, when the owners of the houses who could not remove the loan before the start of the interest rate of interest rate of interest rate of interest rate of interest rate of interest rate of interest rate of interest rate because of the in case of buying a new property they have to borrow worse conditions. High insurance premiums are another barrier to the market.
“Revival of the market”
Analysts said that despite the poor results, some were recorded at times and home sales increased by 2.2 percent during that period. compared to last month. This is the best result since February 2024 – the American portal wrote.
“The sale of houses in the last months of the year has been shown regardless of the high percentage of the year,” said the national economists.
According to analysts’ forecasts, the mortgage interest rate is higher than 6 percent. until 2026. Interest rates were also high in the 1980s, but then house prices are much lower – the American portal noted.
Main photo source: Shuttostrock
