Sales of existing homes in the United States have declined as average prices reached another record level. High mortgage rates, limited housing supply and rising prices continue to make home ownership difficult, particularly for younger buyers and first-time purchasers. Although parts of the housing market are beginning to contribute modestly to economic growth, affordability remains a major national problem. Many households are delaying purchases or remaining in rental accommodation for longer. Policymakers are debating whether tax incentives, construction reforms and lower interest rates could improve supply without creating another period of excessive borrowing or housing-market speculation.
