In the US, there is a decline in the real estate market, but housing prices are still rising.

The housing market in the US is experiencing cooling, the number of signed contracts for the purchase of homes in July decreased by 0,7% compared with June. And when compared to July 2017 of the year, this figure decreased by 2,3%.

Фото: Depositphotos

This is the seventh month in a row, when in the US there is a decrease in demand for housing, writes CNBC.

Lawrence Yun, Realtors' chief economist, suggests that the reason for the decline in sales is that several years of inadequate supply in the housing market finally led to an increase in housing prices to such an extent that an increasing number of potential buyers cannot afford such a purchase. . The affordability of housing is further reduced due to rising interest rates on mortgage loans. The average rate for a popular 30-year fixed mortgage is now about half a percent higher than it was at the beginning of this year.

Despite the decline in the number of sales, housing prices in the US are still growing at a rather fast pace. In June, they grew by more than 6% compared with the previous month. However, the growth rate of real estate prices has slowed. Prices usually depend on the level of sales, while sales have slowed down throughout the year.

At the regional level, sales of apartments in new buildings in the northeastern United States grew by 1% over the month, but amounted to 2,3% compared to the same period last year. In the Midwest, sales rose 0,3% over the month, but were 1,5% less than during the same period 2017 of the year. In the south of the country, sales fell by 1,7% over the month and 0,9% over the year. In the West, sales fell by 0,9% for the month and by 5,8% for the year.

Sales are the weakest in the West of the country, because that’s where the highest prices are observed.

Some large markets in the West, including Denver and Seattle, which were in high demand, are now seeing an increase in supply, which may eventually lead to lower prices.

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