Posted 1/24/2024, 9:40:00 PM
Home Sales Hit Lowest Levels Since 1995 as Housing Affordability Reaches Crisis Point
- Existing home sales in Dec 2023 dropped to lowest levels since 1995, even worse than during the Global Financial Crisis
- Major differences between 1995 & 2023 housing markets smaller US population then, more inventory & better affordability now
- Supply was 4.8 months in 1995 v 3.1 months in 2023; 144 homes sold per 10,000 people in 1995 v 122 in 2023
- Home prices median $114K (& $227K inflation-adjusted) in 1995 v nearly $390K in 2023; mortgage rates 7.93% in 1995 v 8% in 2023
- Housing affordability index was 126.9 in Nov 1995 v 94.2 in Nov 2023; needed $32K income in 1995 v 6-figures in 2023