California real estate investors may be wondering how the U.K.’s vote to exit the European Union may impact the U.S. housing market. According to real estate forecaster Ten-X, it could potentially help stimulate a slowing market.
In its latest Residential Real Estate Nowcast, Ten-X predicts that existing home sales will increase in June, but the pace will be slower than normal. The report forecasts that existing home sales will land between seasonally adjusted rates of 5.38 and 5.74 million, with a target of 5.56 million. That number is up 0.5 percent from May and up 1.4 percent from a year ago. According to the National Association of Realtors, home sales increased by 4.5 percent annually to 5.53 million units in May. That number is up from April’s 5.43 million. The association also reported an annual increase of 4.7 percent in median existing home prices to $239,700 for May. It was the 51st straight month of annual gains.
Ten-X forecasts existing home prices will fall between $231,642 and $256,025 in June, with a target of $243,833. That number is a 1.7 percent uptick from May and a 3.1 percent jump from the same period last year. The executive vice president of Ten-X indicated that the Brexit could push interest rates to a new low, stimulating the market. He also indicated the uncertainty in Europe could mean an influx of foreign capital to the U.S., as investors look for safer markets.
Those interested in buying or selling residential properties may want ot have the assistance of real estate attorneys. Legal counsel could help settle any title disputes, work out the contract terms of the transaction and file all necessary documentation.
Source: Housing Wire, “Ten-X: Home sales still going up, though pace is slowing,” Kelsey Ramirez, June 30, 2016.