The housing market has seen a significant decline in sales over the past year. According to the National Association of Realtors, existing home sales dropped 32% in the last 12 months. This is the largest year-over-year decline since the Great Recession of 2008.
The drop in sales is due to a number of factors, including an increase in mortgage rates, a lack of inventory, and a decrease in consumer confidence. Mortgage rates have risen significantly over the past year, making it more difficult for potential buyers to qualify for a loan. Additionally, the number of homes available for sale has dropped due to a lack of new construction and an increase in homeowners choosing to stay put. Finally, consumer confidence has been low due to economic uncertainty and worries about job security.
The decline in home sales has had a ripple effect on the economy. Homebuilders have seen their profits drop as fewer people are buying new homes. Additionally, the decrease in sales has led to a decrease in home prices, which has hurt homeowners who were hoping to sell their homes for a profit.
The good news is that the housing market is expected to rebound in the coming months. Mortgage rates are expected to remain low, and more homes are expected to come on the market as the economy improves. Additionally, consumer confidence is expected to increase as job security improves.
In the meantime, potential buyers should take advantage of the current market conditions. With mortgage rates still low and home prices down, now is a great time to buy a home. Additionally, homeowners who are looking to sell should consider taking advantage of the current market conditions by pricing their homes competitively.
Overall, the housing market has seen a significant decline in sales over the past year. However, with mortgage rates still low and more homes expected to come on the market, the market is expected to rebound in the coming months.