Existing home sales will decrease in July, according to the latest prediction from Ten-X, an online real estate transaction marketplace.
Home sales are set to hit a seasonally adjusted annual rate between 5.32 and 5.68 million existing home sales with a targeted number of 5.5 million in July, according to the Ten-X Residential Real Estate Nowcast. This represents a decrease of 0.4% from June but up 2% from July last year.
“Extraordinarily low levels of both new and existing home inventory appear to finally be catching up with the housing market,” Ten-X Executive Vice President Rick Sharga said. “This is especially a problem in some of the high-demand metro areas like Coastal California and the Pacific Northwest, and there's virtually nothing available for entry level buyers, which is why first-time homebuyer numbers continue to lag behind historic norms.”
Last month, Ten-X predicted existing home sales would fall between 5.28 million and 5.64 million with a targeted number of 5.49 million. The National Association of Realtors reported a seasonally adjusted annual rate of 5.62 million.
The Nowcast predicts median existing home prices will continue to increase, falling between $251,219 and $277,663 with a target price point of $264,441. An increase of 0.2% in June and 8.3% from last year.
“U.S. home sales continue to zig zag month to month as strong demand clashes with persistently low supply,” Ten-X Chief Economist Peter Muoio said. “The resulting price gains are beneficial for existing homeowners, but restrain prospective buyers.”
“While there are concerns around declining home affordability and its impact on potential buyers, the housing market should remain on solid footing thanks to a firm labor market and rising wages,” Muoio said.
However, NAR’s latest pending home sales report increased in July, reversing a three-month downward trend and signaling existing home sales could soon rise.