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Tuesday, February 27, 2024

USA. Home sales in the United States have plummeted. The worst result since 1995

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Home sales in the United States have fallen to their lowest levels in nearly 30 years. The reasons included a sharp increase in interest rates, which increased costs for buyers.

The National Association of Realtors (NAR) reported that just 4.09 million homes found buyers in 2023, the lowest number since 1995. The organization expects the market situation to improve this year.

Real estate prices in the USA

This is accompanied by an increase in real estate prices overseas. Median sales prices in 2023 increased by 1%. year-on-year, to US$389,800. This is the equivalent of nearly PLN 1.6 million. The median has increased by over 40% since 2019, after a sharp increase in prices during the COVID-19 pandemic.

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NAR economist Lawrence Yun stressed that the recent pace of increases is “unsustainable.” In his opinion, it is necessary to increase supply in order to create a path to home ownership for a wider group of tenants.

– If price increases continue at the current pace, the country may accelerate the division into those who have and those who have not – he warned.

Housing market in USA has slowed down sharply since 2022, when the Federal Reserve (equivalent to the National Bank of Poland) began its cycle interest rate increases in order to fight against inflation.

The BBC station pointed out that last year mortgage interest rates in the US exceeded 7% for the first time in decades. The effect was to end a buying frenzy that erupted during the pandemic, when the central bank cut interest rates to stimulate the economy.

It was noted that, unlike other countries, fixed-rate loans are more popular in the USA. Therefore, many homeowners who purchased apartments during the boom can enjoy interest rates below 4%.

Main photo source: Shutterstock



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