US home sales plunge to lowest level in over a decade

Sales of previously owned homes in the United States fell 5.5 percent in October, reaching levels not seen since August 2010, according to housing market data. The decline reflects ongoing challenges facing the residential real estate sector, which has struggled with elevated mortgage rates and limited inventory in recent months.

The downturn underscores broader cooling in the US housing market after years of robust demand and price appreciation. Higher borrowing costs have dampened buyer enthusiasm, while homeowners reluctant to part with low mortgage rates locked in during the pandemic have kept existing home inventory constrained.

The October figures suggest the residential property market faces continued pressure as economic conditions remain uncertain. Analysts point to the combination of affordability challenges and limited supply as key factors weighing on transaction volumes across most regions of the country.

The housing sector's weakness could have implications for the broader economy, given real estate's significance to employment, consumer spending, and overall economic growth. Market participants are monitoring whether the downward trend will persist or stabilize in coming months.