US home sales plunged to lowest level since 2010
Al JazeeraNov 25, 2022
The Facts
Sales of existing homes in the US fell to a 12-year low in December 2022, according to a report from the National Association of Realtors (NAR) released on Friday.
Sales tumbled 1.5% in December to a seasonally adjusted annual rate of 4.02M units, the lowest level since November 2010. This was also the 11th month in a row of declining sales, making it the longest such stretch since 1999.
The Spin
Pro-establishment narrative
The US government and Federal Reserve are doing what they must to curb inflation and protect the economy from total disarray. Raising interest rates can be a bitter pill to swallow for some hopeful homeowners who have had to put their plans on hold until mortgage rates settle. But this is the medicine the US needs right now. 2023 may be difficult for some, but the US financial system is prepared and, as such, will be able to avoid a national crisis.
Establishment-critical narrative
Affordability has reached a crisis point across the United States with the rising costs of everything from housing to food but stagnant wages. Slumping house sales are just one indication of this — Americans cannot afford to buy what they need. Leaders at the federal level need to recognize the impact on everyday Americans and start making changes.
Cynical narrative
The housing industry in the US is broken. Mortgage rates are sky-high, prices are ridiculous, and there’s a chronic lack of inventory. Americans are paying thousands more per month for housing than they otherwise should. And it's not going to get better any time soon.
