Home Sales Plummet as Mortgage Rates Soar

Demand for existing homes continues to decline, with sales falling to the lowest levels since the 2010 housing bust. However, new listings rose in August, which is unusual for the month, and median days on the market increased. Price reductions as a percentage of active listings also reached a pre-pandemic high, indicating sellers' motivation to sell. The median price remained relatively flat, but was down 1.6% from its peak in June 2022. The balance between buyers and sellers has decreased due to homeowners with low mortgage rates not buying or listing their homes, resulting in lower demand, supply, and churn in the housing market.