Momentum Slips in Housing Market

June’s Residential Nowcast shows the US housing market “remains on solid footing,” says Ten-X’s Peter Muoio.

IRVINE, CA—Following what the National Association of Realtors reported as a year-over-year decline in pending home sales for May, Ten-X’s latest Residential Real Estate Nowcast projects existing home sales to remain “fairly range-bound” in June. The Nowcast, results of which were released on Thursday, predicts existing home sales for this month will fall between seasonally adjusted annual rates of 5.38 and 5.74 million, with a targeted number of 5.56 million. That represents a 0.5% increase from May and a 1.4% Y-O-Y gain.

“Despite facing broader economic headwinds following a disappointing May jobs report, slowing US GDP growth and uncertainty in global markets, the US housing market remains on solid footing,” says Peter Muoio, chief economist with Ten-X. “We continue to hold a positive outlook for housing supported by accelerating wage growth, an accommodative labor market and low interest rates, though persistent issues with declining affordability and low inventory will likely limit stronger gains in sales.”