US Home Sales Rebound, European Market Challenges, and Supply Chain Disruptions

Following five straight months of lagged sales the United States saw a rise of 1.3 percent in owned home sales in July compared with June this year.

According to a report by CNBC, the National Association of Realtors saw home sales rise to a seasonally adjusted rate of 3.95 million units. The Northeast of the country saw the biggest surge in sales.

New home supply also rose with a rise of close to 20 percent in the year ending July representing 1.33 million houses on the market.

Elsewhere, Redfin reported home showings rising by 4 percent over the past week - the highest figure in over a month.

With the US Federal Reserve indicating an interest rate cut later in the year, the hope is lower borrowing costs will boost home sales offering relief to moving companies hoping to capitalise on increased house sales.

The average 30-year-fixed rate mortgage fell to its lowest level since April 2023 to reach just over 6 percent.  

Despite promising US home sales, Europe continues to lag damaging the business model for moving companies…

According to mortgage strategy in a survey of over 10 countries found that it takes on average 110 days for a property to go from initial listing to completion of sale with the United Kingdom the slowest at over 170 days or close to 6 months. Italy ones second at 159 days, with Spain and Portugal both at 152 days. Germany and France meanwhile average 137 and 105 days respectively.

The United States saw the lowest figure at just over 50 days with the United Arab Emirates (UAE) at 70 days.

“It seems you have to move halfway around the world to access a decent home selling process. The Americans are showing the rest of the world up while the UK is making everyone else look very good. That’s not to say the US model is better, but it’s certainly much faster and we should be doing everything we can to speed up what has become a painfully sluggish journey here in the UK,” said Gemma Young, Chief Executive of Moverly, that specialises in material information compliance for the real estate sector.

Moving companies driving between France and Italy will be constrained as the tunnel connecting the two jurisdictions closes for 15 weeks for renovation.

According to Euro News, the vital supply chain link will close to all traffic from September 2 to December 16.

Strikes in Portugal and Germany could cause further disruption to movers in continental Europe as workers' unions in both countries reject deals.

In Germany, the Central Association of German Seaport Operators’ (ZDS) deal was rejected by Ver. di trade union representing 11.500 workers at critical German North Sea Ports for the international moving industry.

The dispute is centred around pay with the rejected deal offering different lengths of contract and associated pay increases and bonuses.

Meanwhile, in Portugal the Union representing employees at the Portuguese Agency for Integration, Migration and Asylum began a strike on August 22 warning continued action for the remainder of the year. Workers’ complaints are centred around staffing and workloads.