After two months of declining existing home sales, Zillow is forecasting a 5.6% jump to 5 million units sold in December, according to Zillow staffer Aaron Terrazas.
Existing home sales dropped sharply in November, potentially due to regulatory changes, which may have delayed the closing of some purchases. We expect home sales to rebound in December, although not to the levels observed this past summer, increasing 5.6 percent month-over-month to 5.03 million units at a seasonally adjusted annual rate.
Zillow is also predicting new home sales to dip 3.2% from November, to 474,000 units, which would still leave new home sales 5.6% higher than a year earlier. Despite a strong start to 2015, new home sales have trended downward since February and, by early 2016, we expect they will be only marginally higher than the year before.