U.S. Housing Market Enters Fourth Year of Slow Sales

U.S. housing market has recorded below-average sales for three consecutive years and is entering a fourth year of reduced activity. Mortgage rates above 6 percent have kept many homeowners from listing properties, while prospective buyers face higher borrowing costs that reduce purchasing power.

Real-estate agents who have continued working through the period describe declining commission income and some are considering leaving the industry. Industry data show monthly sales volumes remain well below the levels recorded before 2022.

Inventory levels have stayed tight because current owners with low-rate mortgages are reluctant to sell and take on new loans at higher rates. The combination of limited supply and reduced buyer demand has kept median sale prices relatively stable despite fewer transactions.