Ten-X is forecasting a decrease in home sales and an increase in median price during June.
According to Ten-X’s Residential Nowcast, June homes sales will hit a seasonally adjusted annual rate (SAAR) between 5.28 and 5.64 million with a targeted number of 5.49 million, down 2.3 percent from May and down 0.7 percent from a year ago.
“Pending home sales numbers, mortgage applications and online search activity all suggest that the market for existing home sales may be cooling off slightly as we enter the summer months,” said Ten-X Executive Vice President Rick Sharga said in a release.
“It's possible that home purchases in the first half were accelerated by consumers trying to get deals done before interest rates increased. If that's the case, we may see existing home sales plateau for the balance of 2017,” Sharga added.
Ten-X Residential is predicting median existing home prices for June will fallbetween $244,194 and $269,899 with a target price point of $257,046, up 1.7 percent from May and a 3.8 percent gain from last year.
“While sales keep edging up, historically low inventory levels continue to restrain the pace of growth. Meanwhile, intensifying competition between owner-occupants and increasingly active investors amid the low inventory situation, are generating substantial price increases,” Ten-X Chief Economist Peter Muoio said.
“This price appreciation is beneficial for existing homeowners, but will continue to affect affordability. As long as the labor market remains strong and wages continue to increase, the housing market will remain on solid footing,” Muoio added.