Ten-X projected continued growth in existing home sales for April due to quarter regulatory and weather-related closing delays in its latest Ten-X Residential Real Estate Nowcast.
April existing home sales will increase by 3.6% from March and will fall between seasonally adjusted rates of 5.3 and 5.7 million, with a target of 5.52 million, according to the report. This is an increase of 7.4% year-over-year.
"U.S. home sales have recently been subject to volatility on a monthly basis, mostly due to external factors," Ten-X Chief Economist Peter Muoio said. "However, beneath that volatility are clear signs that sales activity is floating at a relatively high level overall.
“And, while concerns remain over broader trends such as global economic volatility, weak first quarter U.S. GDP growth, and persistently lower oil prices affecting energy-based companies, the U.S. housing market stands firmly on solid ground supported by a solid labor market," Muoio said.
The National Association of Realtors recently reported a 1.5% annual increase in sales, reaching 5.33 million units in March. This was partially due to a 3.2% monthly increase in home sales in the Northeast after the weather-driven drop in February.
Last month’s nowcast predicted an increase of 5.32 million units in March.
"Online activity by prospective home buyers continues to signal the slow but steady growth that we saw in existing home sales during the first quarter of 2016," Ten-X Executive Vice President Rick Sharga said. "Job creation, wage growth, low interest rates, and stronger household formation numbers are offsetting some of the headwinds that have hampered the housing recovery for the past few years."