Existing Home Sales of US Fall Again As Prices Continue To Rise

The National Federation of Realtors (NAR) announced that in the month of May 2021, the sales of used homes in the United States fell, which is the fourth consecutive month of fall for this item. This is due to a severe shortage of available properties and prices that have also increased. As a result, the average cost of used homes rose 23.6% more, only in May compared to the same month of 2020. That is, there is talk of an average price of 350,300 dollars, according to the NAR.

If we talk about the number of sales of used homes during the month of May, there was a decrease of 0.9%, that is, a total of 5.80 million in the annual projection, although the expectation was 5.71 million. This means that here, the projected amount was achieved even a little better. But this fall is getting monotonous as it’s been happening for several months. In the month of April, sales had represented a decline due to the lack of options, which is one of the main reasons for 2.7% falls. In the month of March, the fall was 3.7%, while in February, the statistics show a 6.6% decrease in sales.

The other reason why this market has weakened is the rise in prices, a consequence of the lack of options as in 12 months there is talk of a rise of 19.1 percent. However, although we find a month-by-month decrease in the sale of used homes in 2021, if the data of the first four months of 2020 is compared with the first four months of 2021, there is rather an increase of 20% for the current year. 

The NAR is the biggest United States trade association in this field, representing 1.3 million members nationwide. This major association recently announced its partnership with a blockchain-based real estate platform. Propy is the name of that association that is based on the Ethereal blockchain as part of its Reach real estate technology business accelerator. Reach brings together the leading technology disruptors in the real estate industry.

In the United States, used home sales account for 85% of the US real estate market. The average fixed mortgage rate is 2.92%, a low level that has not witnessed a rise since the 70s. This is how 2020 passed by, with the same trend, and even in this year, the variation has not been much different.

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ByMahendra D

Jul 1, 2021 ,