US Existing Home Sales Dip in February Amid Low Inventory
In February, sales of previously-owned homes in the United States experienced a 7.2% decline, as reported by the National Association of Realtors. This downturn marks the second consecutive month of reduced sales, following a drop in January as well. The full report can be found here: https://www.cnn.com/2023/03/21/homes/existing-home-sales-february/index.html.
The primary cause of this sales slump is the ongoing scarcity of available homes on the market. Low inventory levels have resulted in heightened competition among buyers, leading to an increase in home prices. In fact, the average price of a home in the U.S. has soared by 15% compared to the same time last year.
Despite these challenges, homebuyer demand remains robust, largely due to relatively low mortgage rates. However, experts suggest that if the housing supply doesn't improve, it could limit potential buyers' opportunities and impede the overall housing market's growth. Builders are currently working to address the inventory shortage by constructing more homes to meet demand.
In summary, February witnessed a drop in existing home sales, primarily due to the limited inventory of available properties and surging prices. While demand for homes is still strong, the market's expansion could be restricted if the housing supply doesn't improve.