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Existing Home Sales to Pick Up in September; Market Shifts to Buyer’s Favor

home-for-saleExisting home sales had a less than promising performance in August, but Auction.com's Real Estate Nowcast projects that they will pick back up in September.

Auction.com predicts that existing home sales for the month of September will fall between seasonally adjusted annual rates of 5.23 and 5.57 million annual sales, with a targeted number of 5.4 million, an increase of 1.7 percent from August and 5.9 percent from a year ago.

"While the modest growth that the Auction.com Real Estate Nowcast predicts for September will not be enough to completely recoup all of the losses experienced in August, it shows that sales are expected to move back in the right direction and maintain solid year-over-year progress," the report said.

nc"All the right underpinnings are in place to support continued demand, from improving labor markets and wage growth to a more approachable lending environment."

According to Auction.com, home prices have also experienced recent declines on a seasonally adjusted basis, but remain healthy. The Nowcast predicts that sales prices for existing homes will fall between $216,372 and $239,148 in the month of September, with a targeted price of $227,760, an 8.9 percent year-over-year increase.

“All the right underpinnings are in place to support continued demand, from improving labor markets and wage growth to a more approachable lending environment," said Peter Muoio, Auction.com chief economist. "That said, we’re expecting growth to assume a much more modest pace as we approach the end of 2015.”

Realtor.com also released their ‘Advance Read of September Trends' report Tuesday.

The data shows home price declines and increased time on the market has moved the September housing market from a seller's market to a buyer's market. This transition means that it is easier for buyers to purchase a home compared to any other time so far this year.

“The spring and summer home-buying seasons were especially tough on potential buyers this year with increasing prices and limited supply,” said Jonathan Smoke, chief economist for realtor.com. “Buyers who are open to a fall or winter purchase should find some relief with lower prices and less competition from other buyers. However, year-over-year comparisons show that fall buyers will have it tougher than last year as the housing market continues to show improvement.”

Median list prices are also falling from July's peak as demand in a seasonally weaker period, the report found. Inventory has also peaked for 2015, which means that buyers will not have as many choices for the rest of the year.

The national median list price is $230,000, down 1 percent over August and up 6 percent year-over-year. Inventory levels stand at 80 days, up 6.7 percent from August, but down 5 percent year-over-year. Realtor.com predicts that listings inventory will end the month 0.5 percent lower than August's numbers.

Click here to view Auction.com's Nowcast.

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.
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