Existing Home Sales Plummet to 13-Year Low Amidst Rising Prices and Mortgage Rates

Home sales in the US dropped to a 13-year low in September, as surging interest rates and climbing home prices made buying a home unattainable for many potential buyers. The historically low inventory of homes for sale continued to push prices up, with the median price for existing homes reaching a record high of $394,300. Limited inventory and low affordability have hampered home sales, and analysts expect further monthly drops in sales throughout the year. The high cost of homeownership is excluding many people from building equity and wealth, and the composition of buyers is changing, with a decrease in first-time buyers and an increase in all-cash purchases. This trend raises questions about the future of homeownership in America.