(AURN News) – Home sales here in the U.S. continued to fall in October, according to new data from the National Association of Realtors (NAR). The housing market experienced a notable decline in October, marking the lowest Pending Home Sales Index levels since 2001. The new statistics reveal a troubling trend, with pending transactions dropping by 8.5% compared to the same period last year.
“During October, mortgage rates were at their highest, and contract signings for existing homes were at their lowest in more than 20 years,” Lawrence Yun, chief economist for NAR, commented.
Regionally, the South, Midwest, and West all reported month-over-month declines in home transitions. However, the Northeast bucked the trend, experiencing gains in home sales. Despite the regional differences, the NAR highlights that all four regions registered year-over-year declines, painting a comprehensive picture of the challenges facing the real estate market.
The past year and a half has seen a confluence of factors making the “American Dream” of homeownership increasingly difficult. Rising interest rates and a substantial surge in home prices over the past couple of years have contributed to the challenges faced by prospective buyers. According to Bankrate, the average cost for an existing home has surpassed $410,000, a significant increase from the $280,000 average recorded in 2020.
Data from the NAR released in March highlighted a persistent gap in homeownership rates between different racial communities. Black homeownership rates continue to lag behind, revealing the largest gap between white and Black Americans in a decade.
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