U.S. existing home sales hit lowest since 2010 in December, the biggest annual drop since the financial crisis

The total number of existing home sales in the United States fell to an annualized 4.02 million in December, the lowest level since 2010. For the whole of 2022, it will fall by 17.8%, the largest annual decline since 2008. Since last year, along with the Federal Reserve’s firm crackdown on inflation and continuous aggressive interest rate hikes, the rapid surge in mortgage interest rates has cooled the U.S. real estate market sharply, resulting in a decline in sales and pressure on housing prices. While mortgage rates have retreated from their peaks in recent weeks, the outlook for the U.S. housing market remains uncertain. | Related Reading (Wall Street Insights)

Pan Baixuan

Like China, real estate is also a “pillar” industry in the United States. It is said that its contribution to GDP even exceeds that of manufacturing. It is a leading indicator of a U.S. recession.

Although the per capita living space of the American people leads the world, they still have the need to improve their living conditions. Now that the interest rate hike cycle has come to an end, I am afraid that if the interest rate is not lowered, the willingness to buy houses in the United States will not improve. Only when the interest rate is lowered, or even reduced to a certain extent, will it improve. After all, the urbanization rate of the United States is much higher than that of China, and the so-called rigid demand is much less than that of China.

China’s real estate is also in dire straits now, and it is expected to stabilize in 2023.

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