Home Sales Plunge, Investors Pull Back Too, Prices Drop 8.4% in 4 Months, Active Listings & Price Cuts Rise Further, by Wolf Richter

It looks like the real estate market isn’t doing too well. From Wolf Richter at wolfstreet.com:

Sellers are struggling with denial: Priced “right,” a home will sell, but “right” is where the buyers are, and they’re a lot lower.

Sales of all types of previously owned homes – houses, condos, and co-ops – fell by 5.9% in October from September, the ninth month in a row of declines, to a seasonally adjusted annual rate of sales of 4.43 million homes, just a hair above the lockdown-month of April 2020, according to the National Association of Realtors. Compared to the recent free-money peak in October 2020, sales were down 34%.

Year-over-year, sales fell by 28%, the 15th month in a row of year-over-year declines. Beyond April and May 2020, this was the lowest rate of sales since December 2011 (historic data via YCharts):

Sales of single-family houses plunged by 6.4% in October from September, and by 28% year-over-year, to a seasonally adjusted annual rate of 3.95 million houses.

Sales of condos and co-ops fell by 2.0% in October from September, and by 30% year-over-year, to 480,000 seasonally adjusted annual rate.

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