U.S. existing home sales to have risen in August, likely to rebound from current rate

U.S. existing home sales are expected to have risen in August. According to a Wells Fargo research report, existing home sales are likely to have risen to 5.39 million. In the prior month, existing home sales had recorded a fall. Re-sales of single family homes and condo and co-ops had fallen 0.7 percent to a 5.34 million unit pace in July, and had dropped 1.5 percent year-on-year. Excluding re-sale of condo, existing single family homes performed slightly better and saw just 0.2 percent fall.

The lack of inventory is keeping home prices for increasing and is retraining sales. Total inventory had dropped 0.5 percent last month, while the month’s supply of homes on the market remained constant at 4.3 months.

Existing home sales continue to stay in low gear, while affordability is a rising concern. Mortgage rates have risen in the last year, and continued low levels of inventory on the market have translated to home prices rising well ahead of income growth, noted Wells Fargo.

“Still, signs continue to point to economic growth remaining solid headed into the fall, which should allow existing home sales to pick up from their current pace”, added Wells Fargo.

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