The median price for existing home sales is projected to increase 5.4% and rents will hit new highs with a 6.3% increase, adding to budget pressures for potential first-time homebuyers, the report said. Year over year, home sales are projected to drop 14.1% and inventory of homes for sale, which has been scarce in most markets for the last two years, will increase 22.8%. “It will be a challenging year for both buyers and sellers, but an important one in setting the stage for home sales to return to a sustainable pace over the next two to three years.”