Existing home sales in the United States are down to levels not seen for almost two decades:

Sales of existing homes in the U.S. are on track for the worst year since 1995—for the second year in a row.  

Persistently high home prices and elevated mortgage rates are keeping potential home buyers on the sidelines. Sales of previously owned homes in the first nine months of the year were lower than the same period last year, the National Association of Realtors said Wednesday.

Existing-home sales in September fell 1% from the prior month to a seasonally adjusted annual rate of 3.84 million, NAR said, the lowest monthly rate since October 2010. Economists surveyed by The Wall Street Journal had estimated a monthly decrease of 0.5%. 

Three quick thoughts in response:

1. The article hints at the consequences of this low level of sales. The mortgage industry is not originating as many mortgages. Potential homebuyers do not have as many options to choose from and the prices are higher. Not mentioned: does this mean this is helping to keep home values high? Or how much less economic activity does this all add up to?
2. Why are home sales measured in absolute numbers? Compared to 1995, I assume there are more potential homes that could be sold in the United States because there are more homes. If we looked at the percentage of existing homes sold, wouldn’t the lower activity even be more clear?
3. The expectation in this article and elsewhere seems to be that home sales should be at a higher level or should be growing in number. How cyclical are these numbers? How realistic is it to expect ongoing growth in this area? Looking at the chart in the article going back to 1981, it looks like there are 3 rises in growth followed by periods of lower numbers.

By itself, I am not sure what this particular figure compared to change over time means. What happens in the long run if the trend continues or it does not?