Home Sales Hit a New Low: 2023 Ends with Weakest Performance Since 1995

The real estate market witnessed a significant downturn in December, with sales of previously owned homes dropping 1% from November to 3.78 million units, adjusted seasonally and annualized. This decline marks a 6.2% decrease compared to December 2022, reaching the lowest point since August 2010. The year 2023 closed with only 4.09 million units sold, the weakest performance since 1995. Regionally, sales remained flat in the Northeast but fell in other areas, with a 4.3% decrease in the Midwest, a 2.8% drop in the South, and though the West saw a 7.8% increase. These numbers reflect home closings from contracts likely signed in late October and November, a period when mortgage rates were considerably higher, peaking at around 8% in October before dropping to the 7% range in November. The current rate stands at 6.89%, as per Mortgage News Daily.