Ten-X, the nation’s leading online real estate transaction marketplace, released its monthly Nowcast report which indicates existing home sales decreased slightly in October, the company announced in a release.

According to the Nowcast, October sales hit a seasonally adjusted annual rate (SAAR) between 5.2 and 5.49 million with a targeted number of 5.35 million, down 0.8 percent from NAR’s reported September sales, the report said.

“The lack of available inventory is having a major impact on existing home sales, and there’s not much hope for improvement in the foreseeable future,” Ten-X Executive Vice President Rick Sharga said in the report. “New home construction is still lagging behind demand, about one third of current homeowners don’t have enough equity to put their homes on the market, and there appears to be a psychological barrier coming into play, where homeowners aren’t willing to sell their home because they’re afraid there’s nothing for them to buy. Over time these issues will be resolved, but in the meanwhile, it’s hard to see sales numbers improving significantly.”

In September, the Ten-X Nowcast projected home sales to hover near their current level, a prediction that was confirmed by the recent National Association of Realtors (NAR) release, which showed that total existing-home sales edged higher to a 5.39 million seasonally adjusted annual rate in September. This marks a modest 0.7 percent increase from August’s reported 5.35 million number, though still 1.5 percent lower than a year ago.

Ten-X Nowcast also predicted in September another solid annual gain in existing home prices, which was confirmed by the NAR report, as the median existing-home price for all housing types increased 4.2 percent from a year ago to $245,100 in September.

“Demand for homes remains solid due to a robust labor market and low mortgage rates,” Ten-X Chief Economist Peter Muoio said. “However, extremely low inventory of homes for sale is a major factor constraining sales and driving up prices, diminishing affordability. High student debt, relatively tight underwriting conditions, and the potential for higher interest rates could further constrain a considerable segment of home buyers.”