Existing-home sales for the month of July will reach an annual rate of 5.39 million to 5.75 million, with a target estimate of 5.57 million, according to Auction.com's Real Estate Nowcast report, which forecasts future home sales based on industry data.
That's an increase of about 1.4% compared to June.
Currently, Auction.com is forecasting that the average U.S. home price for July will be $239,126.
Auction.com says it slightly revised down its July forecast about midway through the month after it noticed a decrease in online searches for properties for sale.
That adjustment was in line with a report from the National Association of Realtors showing pending home sales had decreased about 1.8% in June compared to May, due mainly to inventory constraints and price increases.
‘While we believe that the housing market continues to recover from the most volatile boom and bust cycle we've ever seen, that recovery continues to be uneven, taking an occasional step backwards,’ says Rick Sharga, executive vice president for Auction.com, in a release. ‘One potential cause for concern is that as home prices continue to rise – significantly outpacing wage growth – many markets are becoming too expensive for first-time buyers to enter, which effectively causes the whole home-buying engine to seize up.’
Sharga also expressed concern regarding the Fed's recent announcement that it is likely to raise interest rates as early as fall.
‘If mortgage rates rise by as little as a point while home prices continue to go up, the slow but steady housing recovery we've been watching could suddenly take a turn for the worst,’ he says.