Existing homes sales will slip 1.2% in May compared to April and 0.54% compared to May 2016, online real estate marketplace Ten-X forecasts
Existing homes sales will slip 1.2% in May compared to April and 0.54% compared to May 2016, online real estate marketplace Ten-X forecasts.
The decline means a target of 5.5 million sales at a seasonally-adjusted annual rate with a forecast range of 5.37 million to 5.73 million. The predicted monthly decline is based on NAR’s April figure of 5.57 million units.
"Two consecutive months of weaker existing home sales isn't cause for panic, but it does suggest that forecasts calling for a robust housing market may have been too optimistic," said Ten-X’s Rick Sharga. "It appears that the combination of extraordinarily low inventory and home price appreciation that continues to outpace wage growth is slowing down sales, especially in some of the country's higher priced markets."
The Ten-X monthly Nowcast predicted a slowdown in sales for April and that the year-over-year median existing home price would increase, something that it sees happening again when May’s NAR figures are released.
The existing median price is forecast in the range $237,570 to $262,577 with a target price point of $250,074. That would mean a rise of 2.2% from April and 4.3% from May 2016.
"Despite inventory constraints continuing to fuel price gains and curb affordability, demand is healthy and relatively low mortgage rates have enabled more buyers to enter the market," said Ten-X Chief Economist Peter Muoio. "While there is some uncertainty over the possibility of another rate hike and its impact on affordability, the housing market remains on solid footing supported by a firm labor market and rising wages."
