• Sun. Apr 21st, 2024

House prices fall annually for first time in 11 YEARS as sales plunge by more than fifth

Bynewsmagzines

Mar 21, 2023
A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California. Prices climbed in the Midwest and South yet waned in the Northeast and West, bringing to an end a 131-month hot streak of nationwide year-over-year increases - the longest on record

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House prices have fallen annually for the first time in eleven years as sales plunged by more than a fifth.

The national median existing-home price fell 0.2 percent in February from a year earlier to $363,000, marking the first year-over-year decline since February 2012, the National Association of Realtors said Tuesday. Median prices plunged 12.3 percent from a record $413,800 in June.

Prices climbed in the Midwest and South yet waned in the Northeast and West, bringing to an end a 131-month hot streak of nationwide year-over-year increases – the longest on record. 

The Fed’s historic drive to throttle inflation with rapid interest rate hikes has battered the housing market by forcing mortgage rates higher. 

Total existing-home sales fell by 22.6 percent year-over-year to a seasonally adjusted annual rate of 4.58 million, down from 5.92 million in February 2022.

A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California. Prices climbed in the Midwest and South yet waned in the Northeast and West, bringing to an end a 131-month hot streak of nationwide year-over-year increases - the longest on record

A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California. Prices climbed in the Midwest and South yet waned in the Northeast and West, bringing to an end a 131-month hot streak of nationwide year-over-year increases - the longest on record

A for sale sign is posted in front of a home for sale on February 20, 2023 in San Francisco, California. Prices climbed in the Midwest and South yet waned in the Northeast and West, bringing to an end a 131-month hot streak of nationwide year-over-year increases – the longest on record

The national median existing-home price fell 0.2 percent in February from a year earlier to $363,000, marking the first year-over-year decline since February 2012, the National Association of Realtors said Tuesday. Median prices plunged 12.3 percent from a record $413,800 in June

The national median existing-home price fell 0.2 percent in February from a year earlier to $363,000, marking the first year-over-year decline since February 2012, the National Association of Realtors said Tuesday. Median prices plunged 12.3 percent from a record $413,800 in June

The national median existing-home price fell 0.2 percent in February from a year earlier to $363,000, marking the first year-over-year decline since February 2012, the National Association of Realtors said Tuesday. Median prices plunged 12.3 percent from a record $413,800 in June

This four bedroom house in Austin, Texas was listed a month ago for $3.9 million - up from $650,000 when it was last listed in 2019. The price has now been cut by $200,000 to $3.7 million

This four bedroom house in Austin, Texas was listed a month ago for $3.9 million - up from $650,000 when it was last listed in 2019. The price has now been cut by $200,000 to $3.7 million

This four bedroom house in Austin, Texas was listed a month ago for $3.9 million – up from $650,000 when it was last listed in 2019. The price has now been cut by $200,000 to $3.7 million

While the annual rate was down, house prices surged by 14.5 percent last month as buyers swooped on better mortgage deals.

Sales increased in all four regions, with the Midwest, West and the densely populated South posting double-digit growth.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.60 percent as of March 16 – down from 6.73 percent the previous week but up considerably from 4.16 percent a year ago. 

‘Home sales, I think, have already bottomed out,’ said Lawrence Yun, NAR’s chief economist. ‘Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines.’

The Fed is currently meeting to decide whether to forge ahead with planned rate hikes following the collapse of regional banks SVB and Signature, as well as the failure of global investment beast, Credit Suisse.

Its decision will have an immediate impact on mortgage rates and the housing market, which is one of the most rate-sensitive slices of the economy.

Jerome Powell is expected to announce a 25 basis point increase from 4.75 percent to 5 percent Wednesday afternoon.

Two weeks ago the market was betting on a 50 basis point hike.

Austin, Texas is one of just 20 cities that has seen prices decline for single-family homes. The decline of existing-home sales for January was nationwide, but most pronounced in the West, where sales were down 42.4 percent year-on-year

Austin, Texas is one of just 20 cities that has seen prices decline for single-family homes. The decline of existing-home sales for January was nationwide, but most pronounced in the West, where sales were down 42.4 percent year-on-year

Austin, Texas is one of just 20 cities that has seen prices decline for single-family homes. The decline of existing-home sales for January was nationwide, but most pronounced in the West, where sales were down 42.4 percent year-on-year

Total existing-home sales fell by 22.6 percent year-over-year to a seasonally adjusted annual rate of 4.58 million, down from 5.92 million in February 2022

Total existing-home sales fell by 22.6 percent year-over-year to a seasonally adjusted annual rate of 4.58 million, down from 5.92 million in February 2022

Total existing-home sales fell by 22.6 percent year-over-year to a seasonally adjusted annual rate of 4.58 million, down from 5.92 million in February 2022

The median price in the West is the most expensive in the country at $525,200 - down 4.6 percent from January 2022. Pictured are homes in San Francisco - one of the most expensive cities in the United States

The median price in the West is the most expensive in the country at $525,200 - down 4.6 percent from January 2022. Pictured are homes in San Francisco - one of the most expensive cities in the United States

The median price in the West is the most expensive in the country at $525,200 – down 4.6 percent from January 2022. Pictured are homes in San Francisco – one of the most expensive cities in the United States 

There were 980,000 unsold houses on the market at the end of February, up 15.3 percent on the same time last year. 

At February’s sales pace, it would take 2.6 months to exhaust the current inventory of existing homes, up from 1.7 months a year ago.

A four-to-seven-month supply is viewed as a healthy balance between supply and demand. 

‘Inventory levels are still at historic lows,’ Yun added. ‘Consequently, multiple offers are returning on a good number of properties.’ 

First-time buyers were responsible for 27 percent of sales in February, down slightly from 29 percent in February 2022.

An earlier report by NAR revealed that the annual share of first-time buyers was at historic lows.

Properties typically remained on the market for 34 days last month, up from 33 days in January.

Fifty-seven percent of homes sold in February were on the market for less than a month. 

Source: | This article originally belongs to Dailymail.co.uk

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