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December Existing Home Sales Down

[Post Category: Industry News]

The Ten-X Residential Real Estate Nowcast on Thursday forecast a modest month-over-month decrease in December existing home sales in an early look at the month, predicting sales will fall between seasonally adjusted annual rates of 5.33 and 5.69 million, with a targeted number of 5.51 million, a 1.8% drop from November but up 0.9% from the year-ago level.

“It’s possible that we’re seeing the effect of rising mortgage rates slowing down existing home sales,” said Ten-X Executive Vice President Rick Sharga. “It’s also possible that we may see the numbers trend upwards as buyers decide to enter the market before interest rates go even higher.”

The National Association of RealtorsĀ® (NARĀ®) recently reported that November existing home sales increased to a seasonally adjusted rate (SAAR) of 5.61 million units in November.

“All things considered, 2016 has been a remarkably good year for both existing and new home sales,” Sharga noted. “We’ve seen year-over-year sales increases despite home prices appreciating more rapidly than wage growth, tight credit and limited supply. Clearly, demand remains fairly strong.”

The NAR also recently reported a 6.8% year-over-year increase in median existing home prices to $234,900 in November. This increase marked the 57th consecutive month of annual gains and also confirmed the Nowcast prediction made in November. The December Ten-X Residential Real Estate Nowcast predicts that median existing-home prices will fall between $221,679 and $245,013 in December with a target price point of $233,346, down 0.7% from November, but up 4.1% from a year ago.

“As we round out 2016, the U.S. housing market continues to benefit from a strong labor market, as solid job gains, low unemployment and promising wage growth fuel a high level of underlying demand for homes,” said Ten-X Chief Economist Peter Muoio. “While there are still headwinds to sales growth in the way of tight inventory, low affordability and the likelihood of mortgage rate increases, solid fundamentals continue pointing to the overall health of the housing market.”






as appeared on Builder Online


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