Existing homeowners with 3% mortgages remain frozen in place, as sales fall to a new 28 year low – by New Deal democrat October marked yet another month in the fully bifurcated housing market, in which most existing homeowners are frozen in place by their 3% mortgages, and buyers have turned to new homes (and in particular condos and apartments) instead. Existing home sales fell yet again, by 16,000 annualized, to 3.79 million, 45% down from their 2021 peak, and the lowest level since 1995: This is of a piece with the collapse in purchase mortgage applications, which have also declined to 1995 levels, per Edward Yardeni: With inventory so restricted, prices have held firm, and have even increased. In October, the median price
Topics:
NewDealdemocrat considers the following as important: existing home sales, Hot Topics, New Deal Democrat, November 2023, US EConomics
This could be interesting, too:
NewDealdemocrat writes JOLTS revisions from Yesterday’s Report
Joel Eissenberg writes No Invading Allies Act
Bill Haskell writes The North American Automobile Industry Waits for Trump and the Gov. to Act
Bill Haskell writes Families Struggle Paying for Child Care While Working
Existing homeowners with 3% mortgages remain frozen in place, as sales fall to a new 28 year low
– by New Deal democrat
October marked yet another month in the fully bifurcated housing market, in which most existing homeowners are frozen in place by their 3% mortgages, and buyers have turned to new homes (and in particular condos and apartments) instead.
Existing home sales fell yet again, by 16,000 annualized, to 3.79 million, 45% down from their 2021 peak, and the lowest level since 1995:
This is of a piece with the collapse in purchase mortgage applications, which have also declined to 1995 levels, per Edward Yardeni:
With inventory so restricted, prices have held firm, and have even increased. In October, the median price (which is not seasonally adjusted) rose for the fourth month in a row on a YoY basis, by 3.4%, to $391,800 [note: current month’s data not included in the below graph]:
For comparison, here are new home sales since 1995:
So long as the Fed keeps interest rates elevated, we can expect this trend of a frozen existing home market driving people to purchase new single family homes and condos to continue.
Sales near 25-year lows, huge divergence between New and Existing Home Sales continues, Angry Bear, New Deal democrat.