America's growing home tenure is threatening potential home sales growth

Potential existing-home sales fell in July as inventory concerns continued to threaten the market’s overall growth, according to First American’s Potential Home Sales Model. According to the company’s analysis, the market potential for existing-home sales fell by 1.2% from 2018, equating a loss of 63,000 sales. First American Chief Economist Mark Fleming said America’s rising tenure length means that there are both fewer buyers and homes on the market, keeping existing-home sales below market potential.