The latest Ten-X Residential Real Estate Nowcast, released Monday, indicates a minor decrease in July existing home sales. According to the Nowcast, July sales will hit a seasonally adjusted annual rate (SAAR) between 5.32 and 5.68 million with a targeted number of 5.50 million, down a slight 0.4% percent from NAR’s reported June sales but up 2.0 percent from July last year.
“Extraordinarily low levels of both new and existing home inventory appear to finally be catching up with the housing market,” said Ten-X Executive Vice President Rick Sharga. “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 home buyer numbers continue to lag behind historic norms.”
“US home sales continue to zig zag month to month as strong demand clashes with persistently low supply. The resulting price gains are beneficial for existing homeowners, but restrain prospective buyers,” said Ten-X Chief Economist Peter Muoio. “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.”
