Existing-home sales are projected to fall between seasonally adjusted annual rates of 5.46 and 5.86 million annual sales, with a targeted number of 5.64 million, for the month of August as the market starts to potentially cool off, according to the latest Auction.com Real Estate Nowcast.

This is up 1% from July and 12.9% from a year ago, the strongest year-over-year gain in nearly two years.

"We may be looking at the beginning of a shift in existing home sales activity," said Auction.com Executive Vice President Rick Sharga.

"The volume of sales, while continuing to increase, appears to be slowing down. And home prices, which have consistently appreciated over the past few years, may finally be leveling off," he continued.

According to the most recent report from the National Association of Realtors, existing-home sales steadily increased for the third consecutive month in July.

Total existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 2.0% to a seasonally adjusted annual rate of 5.59 million in July from a downwardly revised 5.48 million in June.

Sales in July remained at the highest pace since February 2007 (5.79 million), have now increased year-over-year for ten consecutive months and are 10.3% above a year ago (5.07 million).

“Limited inventory of homes for sale – especially entry level homes for first-time home buyers – will make it hard for the market to reach higher numbers in 2015,” Sharga noted. “This is true for both existing home sales and new home sales, where inventory is improving, but still near a 40-year low.”

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