Are you feeling hesitant about making major financial commitments like purchasing a home due to uncertainty surrounding the upcoming U.S. presidential election? You’re not alone. According to NAR Chief Economist Lawrence Yun, the election could be contributing to buyer hesitancy, as major decisions are often deferred during times of political uncertainty.
Despite weak demand, the housing supply grew to 1.39 million units in September, the highest level since October 2020, offering more choices to consumers with a 23.0% increase from a year ago. However, prices remain elevated, with the median home price rising 3.0% year-on-year to $404,500 across all U.S. regions. At the current sales pace, it would take 4.3 months to clear existing home inventory, closer to the healthy four-to-seven-month range.
Market trends show homes staying on the market for an average of 28 days in September, longer than the previous year, with first-time buyers making up only 26% of purchases. All-cash sales accounted for 30% of transactions, slightly up from the previous year, while distressed sales remained minimal at 2%.
Looking ahead, the housing market continues to face challenges from high mortgage rates and elevated prices, causing prospective buyers to remain cautious. Although inventory is improving, it has yet to meaningfully lower prices or increase sales. The market outlook remains bearish until we see a sustained decline in mortgage rates.
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