The U.S. housing market is sending new warning signs as pending home sales recently plummeted to their lowest point in over 30 years, according to the National Association of Realtors. High mortgage rates, which have hovered around 7% since spring, combined with rising home prices and a tight housing inventory, have significantly cooled buyer demand. With the average home now less affordable for many Americans, the market is struggling to recover from historically low sales activity.
This sustained downturn suggests that housing affordability will remain a major challenge into the coming year, especially as potential sellers hold off on listing their homes and buyers face borrowing constraints. While some experts anticipate moderate improvements if rates fall, a substantial rebound in sales activity is unlikely unless there are significant changes to mortgage rates or broader economic conditions.
Read the original Arizona home sales article.
