Prices Increase and sales drop for U.S. existing home
The fall in sales of existing homes in October all over the nation can be attributed to the fall in affordability of people.
According to a statement of the National Association of Realtors in Wednesday, it was the second consecutive month in September where a fall by 3.2% in sales of town homes, condos, pre-owned family homes and co-operatives is estimated a yearly rate of 5.12 million.
In his statement, Chief Economist of the association Mr. Lawrence Yun expressed that the main reasons for prices hike and fall in home sales all over the country are low inventory and fall in buying power.
There has been an increase in the average sale prices by 12.8% in October last year to last month’s $199,500 which is still higher by 6 % than October 2012.
With the fall in home sales by 1.8% in September, the demand for those homes has already deteriorated. Where a balanced market has a six month supply, it was 4.9 months in September which means there would be a five month supply if sales are made at October rates.
There has been a fall in sales everywhere, with West witnessing a 7.1% from September which is a fall below their last year record. Though the effects of partial government closure in October on sale prices is still unclear, the recent sales records show a month or two old contract agreement buyers and sellers.