Existing Home Sales Hit a 14-Year Low

[bjl584]

Existing home sales hit 14-year low, economists see 2025 recovery

[Jluke]

Didn’t read. Let me guess.

higher home prices?
higher interest rates?

people still waiting for the housing and interest rate crash?

those of us with paid off or low interest mortgage reluctant to sell. Since you are getting “less house” for more money.

[disneysteve]

The problem continues to be a severe housing shortage. Demand is far outpacing supply which is what keeps driving prices higher despite interest rates.

[ua_guy]

We've kept in touch with a good realtor as we are still planning the next 5+ years, and the communications as of last week were, we can opt to list our house in the worst possible season, the holidays, and it WILL sell. Inventory is still stupidly constrained and that is the reason for "low sales numbers", but the same reason we're able to list 40-50% higher than what we paid for it 4 years ago. The buyers in the current market pay in cash or they have the means to absorb a loan of any percentage at historically elevated interest rates. These are frustrated people who do not want to wait for a softer market, and/or HAVE to move.

[Fishindude77]

I don't feel like the alleged housing shortage is as big of a deal as it gets made out to be.
For many years in the US we've treated housing almost like it's disposable. Live there a few years, move on, get into something better, etc.
With less units available this forces folks to stay put and or improve / remodel existing stuff which is not a bad thing.

A generation or two ago families got a house, held a job, worked hard to pay it off, then most stayed there the rest of their lives, taking care of it and fixing it up to their liking over a lifetime.
Sometime ago the trend started where families started job jumping, trading up and swapping houses multiple times in their lifetimes. Heck, I know folks that have owned probably ten homes.
Hard to develop a community / neighborhood when the occupants are constantly changing.

I'm not sure building a bunch of new units will cure much as entry level homes in low cost areas still run $400k or more which is really stretching the capabilities of many.
I'd like to see some incentives and breaks to encourage the renovation and reuse of blighted properties, rebuilding in towns, etc. rather than eating up undeveloped farmland with new greenfield projects.
Take a look at communities like Detroit, Gary, Cleveland, etc. we've all seen in the news. Block after block of vacated homes going to crap, people leaving this mess behind, then starting new somewhere.

[ua_guy]

I don't feel like the alleged housing shortage is as big of a deal as it gets made out to be.
For many years in the US we've treated housing almost like it's disposable. Live there a few years, move on, get into something better, etc.
With less units available this forces folks to stay put and or improve / remodel existing stuff which is not a bad thing.

A generation or two ago families got a house, held a job, worked hard to pay it off, then most stayed there the rest of their lives, taking care of it and fixing it up to their liking over a lifetime.
Sometime ago the trend started where families started job jumping, trading up and swapping houses multiple times in their lifetimes. Heck, I know folks that have owned probably ten homes.
Hard to develop a community / neighborhood when the occupants are constantly changing.

I'm not sure building a bunch of new units will cure much as entry level homes in low cost areas still run $400k or more which is really stretching the capabilities of many.
I'd like to see some incentives and breaks to encourage the renovation and reuse of blighted properties, rebuilding in towns, etc. rather than eating up undeveloped farmland with new greenfield projects.
Take a look at communities like Detroit, Gary, Cleveland, etc. we've all seen in the news. Block after block of vacated homes going to crap, people leaving this mess behind, then starting new somewhere.

Perhaps the complete hollowing-out of the working and middle classes might be a factor? Hmm? Because companies don't take care of or reward employees like they used to, they have to jump to find the next increase or greener grass. Outside of that, work tends to involve more travel at higher levels of income and more moving around. The flip side of that is affluent folks who do have resources and like to jump from new home to new home, as a luxury, or as a preference. My retired parents don't want to live in a home/neighborhood where young families are just starting out. Another factor is people are living longer and longer and advancements in medicine have been significant. People are wearing out their joints, "the chassis" before their hearts and organs are ready to give up, and older folks have unique needs in home...single level, no stairs, ADA enhancements for accessibility, close to healthcare services, etc. So some of the moving around makes a lot of sense.

[kork13]

We've got our house for sale right now, for about the last month. AOM in the area is about 45 days, so nothing wildly concerning right now ... though I'll admit we were hoping to have it under contract by now. There's a variety of factors that both help and hurt home sales in the area, but the market there does seem to have slowed down somewhat over the last few months. The good news is that we own the home outright, so there's no stress of carrying a mortgage payment on it while we wait for the right buyers. We'll see how it goes.

[LivingAlmostLarge]

I don't feel like the alleged housing shortage is as big of a deal as it gets made out to be.
For many years in the US we've treated housing almost like it's disposable. Live there a few years, move on, get into something better, etc.
With less units available this forces folks to stay put and or improve / remodel existing stuff which is not a bad thing.

A generation or two ago families got a house, held a job, worked hard to pay it off, then most stayed there the rest of their lives, taking care of it and fixing it up to their liking over a lifetime.
Sometime ago the trend started where families started job jumping, trading up and swapping houses multiple times in their lifetimes. Heck, I know folks that have owned probably ten homes.
Hard to develop a community / neighborhood when the occupants are constantly changing.

I'm not sure building a bunch of new units will cure much as entry level homes in low cost areas still run $400k or more which is really stretching the capabilities of many.
I'd like to see some incentives and breaks to encourage the renovation and reuse of blighted properties, rebuilding in towns, etc. rather than eating up undeveloped farmland with new greenfield projects.
Take a look at communities like Detroit, Gary, Cleveland, etc. we've all seen in the news. Block after block of vacated homes going to crap, people leaving this mess behind, then starting new somewhere.

Real estate is local. But I think that many areas there are no homes available. Where we are there is nothing under $2m for a home. I mean zero homes. Condos and townhouses yes but only about a dozen. I'm not in the "metro" but a very close suburb. But nothing really under $1m. Move out 30 minutes houses can be had for $1-2m. Not exactly starter pricing. And you are now 1 hour from the city. I am about 20-30 minutes from the city. Like i said desirable.

So why do people move? At least where I live property taxes drive older people out. Ability to be 65 and the home you've lived in 30 years went from $200k to $2m and your property taxes went from $2000 to $20k. You tell me how you afford it on a fixed income? Many are forced into selling and moving.