U.S. existing home sales plunge; tight inventory keeps prices rising

Despite the broad decline in sales reported by the National Association of Realtors on Friday, housing supply remained tight, with considerably fewer homes coming on the market than in the prior year. The housing market has been the sector hardest hit by aggressive Federal Reserve interest rate hikes that are aimed at quelling high inflation by dampening demand in the economy.

A separate report from The Conference Board on Friday showed the leading indicator, a gauge of future U.S. economic activity, declined 0.8% in October after sliding 0.5% in September. The index has now dropped for eight straight months. Stocks on Wall Street rose. The dollar was steady against a basket of currencies. U.S. Treasury prices fell.Existing home sales dropped sharply in all four regions. Sales also declined across all price points on a year-on-year basis. Even as demand weakens, housing supply remains tight, limiting the slowdown in house price inflation.

There were 1.22 million previously owned homes on the market, down 0.8% from both September and a year ago.

We were in an extremely exuberant housing market. Some additional adjustment is still required, but it will be more painful if the FED keeps rising rates at the current pace.

Hope all these professional landlords and house flippers end up bankrupt.

So, working perfectly! SecYellen POTUS PressSec WHCOS

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