Existing-Home Sales and Housing Starts Fall in September, Decreasing Consistently
Sales continue to fall for previously owned homes in the U.S., and September showed the sixth-straight monthly drop in sales, according to Bloomberg. Sales of these homes have fallen to the lowest level since 2015, and this consistent drop is the longest since 2014.
Despite a lack of desire for purchasing older homes, U.S. housing starts also fell in September, with the major declines coming from the Southern U.S.—specifically in the path of Hurricane Florence. The declines in both housing starts and sales for existing homes may only be temporary, but with the mortgage rates continuing to increase, housing may become too expensive to keep up the demand for building.
September also marks the fifth month of prices rising less than 5% year over year. With mortgage rates climbing and continuing dips in sales and construction, the demand for housing may continue to fall looking ahead. Since hurricane season will be ending in November, the housing starts may decrease until close to the end of 2018.
—Christie Citranglo, editorial associate
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