Previously owned homes sales fell to a two-year low in July compared with June, according to the National Association of Realtors.
Existing home sales in the U.S. dropped 5.9% to a seasonally adjusted annual rate of 4.81 million units last month, which is the lowest level since May 2020 when the Covid pandemic dropped sales to their lowest point.
Outside the pandemic, sales were the slowest since November 2015. It was also the sixth straight monthly sales decline.
Economists polled by Reuters had forecast sales decreasing to a rate of 4.89 million units.
Home resales, which account for the bulk of U.S. home sales, plunged 20.2% on a year-on-year basis.
The report details that sales of homes priced between $100,000 and $250,000 were 31% lower compared with the year before, while sales of homes priced between $750,000 and $1 million were down 8%. Sales of homes priced above $1 million fell 13% from a year ago.
“In terms of economic impact we are surely in a housing recession because builders are not building,” said Lawrence Yun, chief economist for the Realtors. “However, are homeowners in a recession? Absolutely not. Homeowners are still very comfortable financially.”