U.S. Home Sales Crash in October Mostly Due to Escalating Home Prices

U.S. Home Sales Crash in October Mostly Due to Escalating Home Prices

U.S. home sales fell in October after having made impressive gains all year long. Experts seem to think that people are balking as prices for homes have risen over the past couple of months.

U.S. home sales took a hard fall in October as home sales in the country fell 3.4 percent. Fewer Americans were buying homes in October and most analysts believe it is due to rising prices. Many Americans seem willing to wait the market out and hope for more attractive sale prices.

The National Association of Realtors reported Monday that the 3.4 percent decline reflects a seasonally adjusted rate of 5.36 million, according to The Los Angeles Times. The decline seems little more than a glitch as home sales have been rather strong all year long. Despite the October numbers, home sales are up 3.9 percent over 2014 even though there is less to choose from as inventories have tightened all over the country.

Some buyers, however, are being frozen out of the market. Wages have not kept up with prices and the strong sales figures of earlier in the year have caused a sharp spike in home prices all over the country. The dismal slump in October had more than a few real estate experts and analysts thinking the market might be on its way down again.

The more positive among them believe that the job market has strengthened and the enormous rise in rents across the board will still make buying a home more attractive than renting. The median home price in the country was up 5.8 percent to $219,600 in October. The South and the West showed huge slumps as prices in those regions have escalated faster and higher than elsewhere in the country. The Midwest was only down 0.8 percent while the Northeast stayed about the same with sales staying almost as they were a month prior.

Much of the overall sales gains this year have been due to people upgrading their amount of space and those who are going the other way and looking to downsize into something smaller with fewer costs and less upkeep. Tighter supply is keeping prices high for the moment. Freddie Mac reported that current mortgage rates are around 3.9 percent.

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