Zillow's Aaron Terrazas shares the latest update on home sales, which Zillow expects to fall 1.9% in July from June.
New home sales are expected to drop to 5.46 million units at a seasonally adjusted annual rate, drawing a close to a string of four consecutive monthly gains. Existing home sales will likely follow suit, falling 6.65% after a stronger than expected June. The Realtors are scheduled to release existing home sales at 10 a.m. today.
Despite tight inventory, existing home sales have been surprisingly buoyant lately, beating or meeting expectations in each of the four months from March to June. We expect that streak to end in July. If nothing else, the odds that home sales continue to rise are increasingly dim. Since the series began in February 1999, runs of five months or more of consecutive monthly gains have only occurred five times – and only one of those streaks lasted six consecutive months or more.