Page 7 - Aruba Today
P. 7
U.S. NEWS A7
Tuesday 24 November 2015
US Financial Front:
Home sales slip in October as high prices weigh on buyers
JOSH BOAK ber, a 5.8 percent annual A home is for sale in Coral Gables, Fla. Fewer Americans bought homes in October, a sign that
AP Economics Writer increase. Sales fell sharp- rising home values may be pushing more would-be buyers to the real estate market’s sidelines,
WASHINGTON (AP) — ly in the West and South based on information released Monday, Nov. 23, 2015, by the National Association of Realtors.
Fewer Americans bought where prices have risen at
homes in October, a sign the fastest rates this year. (AP Photo/Lynne Sladky)
that rising home values Purchases declined 8.7
may be pushing more percent in the West and
would-be buyers to the real 3.2 percent in the South,
estate market’s sidelines. while dipping 0.8 percent
The National Association of in the Midwest and staying
Realtors said Monday that unchanged in the North-
sales of existing homes fell east on a seasonally ad-
3.4 percent last month to a justed basis.
seasonally adjusted annual The 5 percent unemploy-
rate of 5.36 million. ment rate has helped coax
The decline comes after traditional buyers into the
strong growth in home- market, supplanting the
buying for much of 2015, investors who bought fore-
bolstered by steady job closed properties for all-
gains and low mortgage cash in the aftermath of
rates. Home purchases the Great Recession. Cur-
have advanced 3.9 per- rent homeowners seeking
cent from a year ago, an upgrade or chance to
even as buyers have fewer downsize appear to have
choices because the num- accounted for much of this
ber of listings on the market year’s sales gains, as first-
has dropped 4.5 percent. time buyers accounted
But last month suggest- for 31 percent of sales in
ed the start of a reflexive October. First-time buyers
backlash after the strong have historically made up
gains in home-buying. 40 percent of all sales.
The additional sales have Tight inventories are curb-
spawned sharp price in- ing enthusiasm among
creases that have out- some homebuyers. Just 4.8
paced wage growth and months’ supply of homes is
left some would-be buyers available, well below the 6
out of the market. months associated with a
The October sales de- balanced market.
crease indicates “the mar- The limited supplies and
ket is treading water,” said greater demand fueled
Ian Shepherdson, chief higher home values. Home
economist at Pantheon prices have appreciated
Macroeconomics. at more than double the
Yet other economists an- gains in average hourly
ticipate sales growth to re- earnings, requiring buyers
turn because of the under- to set aside more savings
lying health of the broader for a down payment or bid
economy. more fiercely for the most
“Despite the setback, desirable properties.
home sales should resume Low mortgage rates have
higher in the face of rising offset some of the pain
rents, good job growth, from those price gains. But
improved consumer con- rates have started to rise
fidence and still-low mort- ahead of a December
gage rates,” said Sal Gua- Federal Reserve meeting,
tieri, a senior economist at where Fed officials are ex-
BMO Capital Markets. pected to raise short-term
The median home sales rates for the first time in
price was $219,600 in Octo- nearly a decade.q
