Sales of existing homes in the U.S. dropped to their lowest level in six months this spring, despite a significant growth in inventory. High mortgage rates, economic uncertainty, and fears of recession are affecting buyers' decisions. Prices are still rising, making homes less affordable.
Key Points
Existing home sales hit a six-month low despite rising inventory.
Buyers are hesitant due to high mortgage rates and economic uncertainty.
Prices are still increasing, making homes less affordable.
Pros
Increased inventory provides more options for homebuyers.
Buyers may gain more negotiating power due to the surplus of homes on the market.
Cons
High mortgage rates are deterring potential buyers.
Economic uncertainty and fears of recession are impacting the housing market.
Sellers may need to reduce prices to attract buyers.