Aug. 23 (UPI) — Existing-home sales fell again in July likely because of high mortgage rates and high prices, continuing a five-year decline, the National Association of Realtors said Wednesday.
Sales of previously owned homes fell 0.7 percent to a seasonally adjusted annual rate of 5.34 million per year. The figure is 1.5 percent lower than it was in July 2017, and marks the fourth consecutive month of decline. Despite solid economic growth in the U.S. in the past year, rising prices, higher mortgage rates and a limited inventory of available homes have forced some potential buyers out of the market.
“Too many would-be buyers are either being priced out or are deciding to postpone their search until more homes in their price range come onto the market,” NAB economist Lawrence Yun said.
Realtors have warned that many buyers, notably first-time buyers of homes, are being priced out. They now acknowledge that other potential customers have chosen to wait until market conditions change, Marketwatch reported on Wednesday. First-time purchasers made up 32 percent of all buyers in July, a percentage slightly higher than in June but still well below long-time averages.
The NAB report noted an 8.3 percent decline in existing-home sales in the Northeast in July, a 4.4 percent increase in the West, a 1.4 percent decline in the Midwest and a 0.4 percent fall in the South.
