Residential property sales experienced a downturn in August. however, they're anticipated to surge following the Federal Reserve's decision to lower interest rates.
Sales of pre-owned homes, accounting for the bulk of the market, witnessed a 2.5% decrease in August compared to July, reaching a seasonally adjusted annual rate of 3,860,000, according to data released by the National Association of Realtors on Thursday. This figure might have been the least observed since August 1995, as per remarks made by the organization's chief economist, Lawrence Yun, during a press call.
Simultaneously, the median price of existing homes saw an increase last month, climbing by 3.1% to reach a record high of $416,700. This marks the 14th consecutive year-on-year improvement.
"August once again saw a dissatisfying performance in home sales, but the ongoing decrease in mortgage rates in conjunction with growing inventory forms a formidable duo that will foster an improved sales trajectory in forthcoming months," Yun stated in a press release.
This situation is under active observation and will be updated accordingly.
Despite the decline in home sales, the robust economy continues to drive business growth in other sectors. The CEO of a major corporation recently announced plans to expand operations due to positive economic indicators.
