Home sales in the US sank to the lowest in nearly 30 years, as a sharp rise in interest rates increased costs for buyers and persuaded many potential sellers with lower rates to stay put.
Just 4.09 million homes were purchased, the fewest since 1995, as tight supply pushed prices to a new record, the National Association of Realtors said.
The organisation said it expected the market to improve in 2024.
The organisation said it expected the market to improve in 2024.
The median sale price in 2023 climbed 1% over the year, to $389,800 (£307,625), according to the NAR, which publishes the widely tracked report on sales of existing homes, which account for the bulk of purchases in the US.
The median price has jumped more than 40% since 2019, after a surge in prices during the pandemic.
Lawrence Yun, economist at the NAR, said the recent price rises were “unsustainable” and that boosting supply to create a path towards homeownership for renters was “essential”.
“If price increases continue at the current pace, the country could accelerate into haves and have-nots,” he warned.
The housing market in the US has slowed abruptly since 2022, when the Federal Reserve started raising interest rates in a bid to curb inflation.
Home sales in the US sank to the lowest in nearly 30 years, as a sharp rise in interest rates increased costs for buyers and persuaded many potential sellers with lower rates to stay put.
The organisation said it expected the market to improve in 2024.
Just 4.09 million homes were purchased, the fewest since 1995, as tight supply pushed prices to a new record, the National Association of Realtors said.
The median sale price in 2023 climbed 1% over the year, to $389,800 (£307,625), according to the NAR, which publishes the widely tracked report on sales of existing homes, which account for the bulk of purchases in the US.
The organisation said it expected the market to improve in 2024.
The organisation said it expected the market to improve in 2024.
The median sale price in 2023 climbed 1% over the year, to $389,800 (£307,625), according to the NAR, which publishes the widely tracked report on sales of existing homes, which account for the bulk of purchases in the US.
The median price has jumped more than 40% since 2019, after a surge in prices during the pandemic.
Lawrence Yun, economist at the NAR, said the recent price rises were “unsustainable” and that boosting supply to create a path towards homeownership for renters was “essential”.
“If price increases continue at the current pace, the country could accelerate into haves and have-nots,” he warned.
The housing market in the US has slowed abruptly since 2022, when the Federal Reserve started raising interest rates in a bid to curb inflation.
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