Categories Analysis, Other Industries, U.S. Markets News

US home sales slide for third consecutive month

Sales of existing homes in the US fell for the third consecutive month in June. A shortage in inventory and a rise in prices are said to be the reasons for the decline in the purchase of homes. According to the National Association of Realtors, the seasonally adjusted annual rate for home sales was 5.38 million in June. This reflected a drop of 0.6% versus the previous month. When compared to the same period a year ago, sales fell 2.2%.

The continued slowdown over the past three months points to several challenges in the housing market. The growth in employment and wages have boosted the demand for homes, but this increase in demand combined with a shortage of homes has led to price increases. Increases in mortgage rates have led to high costs for buying homes and the recent tax bill also reduced the benefits of owning homes.

However, during June, inventory rose by 0.5% to 1.95 million compared to a year ago. This increase, which was the first one seen in around three years, could perhaps be a sign that the shortage is ending. Economists are waiting to see if this increase will continue going forward or if it was merely a one-time occurrence. An increase in inventory would lead to an increase in buyers.

The median sales price for a previously-owned home increased 5.2% in June to $276,900 compared to last year. In the West, this rate was double, with the median sales price rising 10.2% to $417,400 from the previous year. The West region also saw a drop in sales during June. There needs to be an increase in first-time buyers for the housing market to gain strength.

Most Popular

MU Earnings: Micron’s Q4 profit declines but beats estimates

Micron Technology Inc. (NASDAQ: MU) Thursday said its fourth-quarter profit declined from last year, hurt by a sharp fall in revenues. Earnings, however, beat the market’s projection. On an adjusted

What are Philip Morris’ (PM) anticipations for the near term?

Shares of Philip Morris International Inc. (NYSE: PM) were down 1% on Thursday. The stock has dropped over 9% year-to-date. Although the tobacco industry has felt the pinch of inflation,

Key highlights from CarMax (KMX) Q2 2023 earnings results

CarMax, Inc. (NYSE:KMX) reported second quarter 2023 earnings results today. Net revenues rose 2% year-over-year to $8.1 billion. Net earnings were $125.9 million, or $0.79 per share, compared to $285.2 million,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top