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U.S. Home Sales Hit Lowest Since 2010 Amid Affordability Crisis
- U.S. existing home sales fell to the lowest level since 2010 last month, marking a nearly 19% decline year-over-year.
- Record-high mortgage rates, the highest in decades, have discouraged prospective buyers. Homeowners with lower rates are staying put, constricting inventory and putting upward pressure on prices.
- Housing affordability, as measured by the National Association of Realtors, fell to its lowest since records began in 1989.
- Approximately 25% of homes sold in September were priced above the list price, and some buyers, eager to secure homes, are forgoing typical contingencies, including inspections and appraisals.
- While inventory rose slightly to 1.13 million homes, it remains the lowest for September since 1999. Given the current sales rate, the existing inventory would last 3.4 months. Notably, 69% of the homes sold in September were on the market for less than a month.