Ten-X, Irvine on Thursday released its latest Ten-X Residential Real Estate Nowcast which indicates September existing home sales will edge marginally lower from their current level.
According to the Nowcast, September sales will hit a seasonally adjusted annual rate (SAAR) between 5.19 and 5.54 million with a targeted number of 5.33 million, down a minor 0.4% from NAR’s reported August sales.
“Existing home sales appeared to be slowing down even before the devastation caused by Hurricanes Harvey and Irma.” said Ten-X Executive Vice President Rick Sharga. “The housing market is likely to suffer over the next few months as the economic disruption caused by the hurricanes exacerbates the dual problems of low inventory and escalating home prices.”
The September Ten-X Residential Real Estate Nowcast predicts that median existing home prices will continue to make annual strides falling between $239,205 and $264,385 with a target price point of $251,795, down 0.7% from August, but up a sizeable 7.5% from last year.
“US home sales are struggling to progress amid historically tight inventory levels,” said Ten-X Chief Economist Peter Muoio. “While the inventory shortage is a boost for existing home owners, intensifying competition among buyers creates affordability concerns. The recent hurricanes and other economic factors like student debt and slowing wage growth will likely have an impact on housing sales as we move into what is traditionally a slow quarter for the housing market.”
