Takeaways:

  • Auction.com has revised its July existing-home sales projections and now expects roughly 5.57 million annual home transactions.
  • The revision represents a 1.4 percent increase from June — a more modest increase than initially forecasted.
  • It also represents a decline of 100,000 sales in comparison to the initial July forecast of 5.67 million.

Auction.com has revised its July existing-home sales projections and now expects roughly 5.57 million annual home transactions.

The revision represents a 1.4 percent increase from June — a more modest increase than initially forecasted by Auction.com’s Real Estate Nowcast. It also represents a decline of 100,000 sales in comparison to the initial July forecast of 5.67 million.

“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,” said Rick Sharga, EVP at Auction.com.

The downward revision is attributed to a shift in online traffic patterns during the latter half of July. This revision is consistent with recent findings from the National Association of Realtors, which also showed a decline in pending home sales.

Auction.com noted that competition for existing homes is stiff due to inventory constraints and price increases. The firm’s projected median sales price for July is $239,126.

“One potential cause for concern is that as home prices continue to rise — significantly outpacing wage growth,” Sharga said, “many markets are becoming too expensive for first-time buyers to enter, which effectively causes the whole homebuying 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 worse,” he cautioned.

Email Erik Pisor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
The best event in real estate kicks off next week! Tickets are selling quickly.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription