Existing-home sales in June will reach an annual pace of about 5.57 million, up 4.1% from May and up 11.2% from June 2014, according to Auction.com's Real Estate Nowcast report, which forecasts future home sales.
The report predicts that annual home sales in June will reach between 5.4 million and 5.74 million, with a targeted figure of about 5.57 million.
Earlier this week the National Association of Realtors (NAR) released data showing that existing home sales in May had reached an annual rate of 5.35 million, an increase of 5.1% compared to April and up 9.2% from May 2014.
These figures were in line with Auction.com's May Nowcast estimate of 5.31 million (revised upward from 5.18 million).
NAR also revised the unusually weak April existing-home sales estimate to 5.09 million, up from its original 5.01 million, indicating that Auction.com's Nowcast for April was closer to target than it originally appeared.
‘Improvements in the labor market and wage growth should continue to increase owner-occupier demand and start to make up for the recent retreat of investors from the market,’ says Rick Sharga, executive vice president of Auction.com, in a release. ‘Inventory has also increased, aiding sales flow as more first-time buyers enter the market just in time for the summer buying season.’
Auction.com predicts that the average home price for an existing home in June will fall between $217,482 and $240,375, with a targeted price of $228,929. This represents a 3.1% year-over-year increase.
‘It certainly appears that the housing market is now on firmer ground, and Google search data and Auction.com data are both signaling further strengthening this month,’ says Peter Muoio, chief economist for Auction.com. ‘Housing turnover is increasing, prices are strengthening and additional sellers are tip-toeing into the market. As long as the labor market continues to gain steam and confidence is not derailed, housing sales and prices could settle into a virtuous, self-reinforcing cycle.’