Existing home sales declined more than expected during September, a sign that high prices and slim inventory continue to be a drag on the housing market despite low mortgage interest rates, strong employment, and wage growth.
Existing-home sales fell 2.2% in September from the previous month to a seasonally adjusted annual rate of 5.38 million, the National Association of Realtors said Tuesday. Economists surveyed by The Wall Street Journal expected sales declined 0.7% last month.
“The housing market is in an unbalanced situation” with soaring prices and persistent low inventory, said Lawrence Yun, the trade group’s chief economist.
Future expectations are weighing more on consumers than are positives in the current market. Yun previously said that would-be buyers had concerns about the direction of the economy, and a report from online real estate brokerage Redfin also mentioned that would-be homeowners don’t feel confident about their job security or their financial well-being.
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