The Housing Market Plunges: Sales Crash, Inventory Dwindles, and Stress Tests Soar

Existing-home sales in the US dropped 15% in September on a year-over-year basis, reaching the lowest figure in 13 years, as surging mortgage rates, low inventory levels, and rising home prices continue to hamper the housing market. The decline in housing transactions is attributed to limited inventory, low affordability, and resistance from current homeowners to sell due to fear of losing their lower interest rates. The situation is reminiscent of the 1980s housing market, with millennials facing a frozen and unaffordable market with rising interest rates, similar to their boomer parents. Experts predict that home prices will continue to rise at a slow pace, exacerbating affordability constraints.