With its best year since the recession in the bag, the housing market will likely slow down next year due to ongoing inventory shortages and rising mortgage loan interest rates, the National Association of Realtors (NAR) predicts. The association’s chief economist, Lawrence Yun, took to the stage at the 2015 Realtors Conference & Expo to offer his economic forecast for 2016. According to Yun, the 2015 housing market was supercharged by pent-up demand in the last few years, wage and job growth and rising home values, but existing home sales next year will likely slow to a more moderate pace. Home sales will likely finish the year at a pace of 5.3 million before expanding about 3 percent to 5.45 million next year due to rising mortgage rates and supply constraints, Yun said. Single-family starts will close the year around 1.1 million and reach 1.3 million in 2016, falling short of the 1.5 million needed to stay on 2015’s strong pace. New home sales are likely to total 50...
- The housing market will likely slow down next year due to ongoing inventory shortages and rising mortgage loan interest rates.
- Most of the sales activity in 2016 will be driven by sellers who are finally able to realize equity gains and list their homes for sale.
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