After several closing delays due to regulatory and weather-related conditions, Tex-X, an online real estate marketplace, expects the market to rebound with a 4.8% increase in existing home sales.
Existing home sales in March are predicted to fall between 5.15 and 5.55 million, a 2.6% year over year increase, according to Ten-X Residential Real Estate Nowcast.
"Though U.S. home sales have seen significant volatility in recent months due to external factors, sales remain at a high overall level," Ten-X Chief Economist Peter Muoio said. "The housing market stands on solid ground despite global economic volatility and weaker GDP growth, with the firmer labor market and enhanced household budgets from low oil providing a boost to consumer confidence."
February sales dropped 7.1% from January to 5.08 million units, according to the National Association of Realtors. This amount was outside the consensus forecast and Tex-X Nowcast ranges.
Last month’s Ten-X forecast predicted sales to fall in February by about 1.3%.
"Both January and February home sales were slightly better than a year ago, and our nowcast predicts that March will continue that trend," Ten-X Executive Vice President Rick Sharga said. "But inventory levels remain low, and home price appreciation continues to outpace wage growth.
These factors suggest that, even with mortgage rates near their historic lows, a return to more 'normal' levels of home sales is still off in the distance."
Freddie Mac, on the other hand, stated that 2016 will be housing’s best year in a decade. The low inventory and affordability problems will pose difficulties, but not prevent the market from rising to its highest level since 2006, according to Freddie Mac’s March Outlook.