U.S. home sales in May dropped to one of the lowest levels in the past decade, according to a report by real estate brokerage Redfin (
RDFN), due to sluggish demand and supply in a high-mortgage rate environment.
Housing affordability in the U.S. has reached an all-time low. Median home prices have hit record highs, and the 30-year fixed-mortgage rate is hovering around 7%, which has dampened both demand and supply.
The number of homes for sale is approximately 25% below pre-pandemic levels, Redfin reports.
Home sellers are reluctant to give up lower fixed mortgage rates secured during an era of cheap debt in light of the current higher rates.
In May, 407,959 homes were sold. Only October 2023 (398,537) and May 2020 (369,300) have seen fewer home sales in the past decade, according to Redfin data.
Home sales decreased by 1 ...
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