Sales of existing homes likely dipped slightly during September, according to the latest Ten-X Residential Real Estate Nowcast.
Ten-X predicted that 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 0.4 percent compared with the National Association of Realtors reported August sales.
“Existing home sales appeared to be slowing down even before the devastation caused by Hurricanes Harvey and Irma,” Ten-X Executive Vice President Rick Sharga said in a release. “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.”
Ten-X also predicts that median existing home prices in September will settle between $239,205 and $264,385 with a target price point of $251,795, down 0.7 percent compared with August, but up 7.5 percent from last year.
“U.S. home sales are struggling to progress amid historically tight inventory levels,” Ten-X Chief Economist Peter Muoio said. “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,” Muoio added.