Home sales are plummeting

more signs. The red hot housing market is chilling existing homes are selling at the slowest pace in nearly seven years. With the exception of the start of the pandemic. How would you characterize the current housing market? Well, several experts now have said that the housing market is in a recession. Home sales are down 20% compared to last year. What’s behind the slowdown? The slowdown is simple. It’s just because of affordability, affordability, hammered by prices up 10.8% from a year ago, limited supply and rising mortgage rates. When Sofia Silva started looking for her home in Chicago, a 30 year fixed mortgage rate hovered around 4%. By the time she closed on her new place, that number hit 5.5% meaning a difference of several $100 in her monthly payments. I kind of panicked and thought maybe I shouldn’t do it anymore. Now the 28 year old social Worker is relying on a second job to make ends meet. I have a great career like 9-5 where I have my masters, that I’ve been working in years now, but that was not going to cut it. And while today’s numbers show median home prices fell month to month for the first time this year declines in July are typical and overall prices Remain high. North of $400,000. Sticker shock, pushing more Americans to rent, rents are sky high and that makes it even harder to save for a down payment nationwide, rent is rising at a slower piece, but it’s still up 14% from last year. Leaving Americans with no easy choice. And while the drop in demand in housing does mean thinning competition, experts worry that builders will now pull back and inventory shortages could last for years Lester.