Home Sales Plunge to 2009 Lows as Mortgage Rates Near 8%, Prices Hit Record Highs
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Home sales in October fell to the lowest level since 2009, down 14.6% from a year ago. This puts 2022 on pace to be the worst year for home sales since 1993.
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Median home prices hit a record high for October at $391,800, up 3.4% from a year ago. Prices rose in all regions of the country.
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Mortgage rates neared 8% in October, reducing affordability. Multiple offers and bidding wars still occurred, especially for mid-priced homes.
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Inventory remained low, at 1.15 million units for sale, about half of pre-pandemic levels. This limited choices for buyers.
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First-time homebuyers remained under 30% of sales. All-cash sales held steady at 29% as investors compete with traditional buyers.