The market for existing home sales moved closer to its full potential in July, according to First American Financial Corp.
First American reported Monday that its Potential Home Sales model showed that possible transactions involving existing homes came to 5.71 million at a seasonally adjusted, annualized rate. This was an increase of 8,000 sales at a seasonally adjusted, annualized rate, or 0.15% from June and up 5.4% from a year ago.
Still, the market underperformed its potential by 1.3%, which equates roughly to 92,000 homes at a seasonally adjusted, annualized rate. In June, the market was underperforming at 1.8%.
"Historically low real house prices, increases in jobs, rising wages, low mortgage rates and greater credit availability are fueling consumer optimism about the housing market," First American chief economist Mark Fleming said in a news release, cautioning that low inventories still remain a concern.
