A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
National Association of Realtor's Housing 2016 Forecast
WASHINGTON (January 12, 2016) — Following the housing market's best year in
nearly a decade, existing-home sales are forecasted to expand in 2016 at a more
moderate pace as pent-up buyer demand combats affordability pressures and
meager economic growth, according to National
Association of Realtors® Chief Economist Lawrence Yun in a
newly-released video on his 2016 housing market expectations.
In the NAR-published
video, Yun discusses his expectations for the U.S. economy and housing
market in 2016 and points to pent-up demand, sustained job growth and improving
inventory conditions as his reasons for an expected gain (from 2015) in new and
existing-home sales (view
infographic).
Despite his forecasted increase in sales, Yun cites rising mortgage rates,
home prices still outpacing wages and shaky global economic conditions as
headwinds that will likely hold back a stronger pace of sales.
"This year the housing market may only squeak out 1 to 3 percent growth
in sales because of slower economic expansion and rising mortgage rates,"
Yun says in the video. "Furthermore, the continued rise in home prices
will occur due to the fact that we will again encounter housing shortages in
many markets because of the cumulative effect of homebuilders under producing
for multiple years. Once the spring buying season begins, we'll begin to feel
that again."
With one month of data remaining for 20151, Yun expects total
existing-homes sales to finish the year up 6.5 percent from 2014 at a pace of
around 5.26 million —the highest since 2006, but roughly 25 percent below the
prior peak set in 2005 (7.08 million). The national median existing-home price
for all of 2015 will be close to $221,200, up around 6 percent from 2014. In
2016, existing sales are expected to grow between 1 and 2 percent (5.30 to 5.40
million) and prices between 5 and 6 percent.
The National Association of Realtors®, "The Voice for Real
Estate," is America's largest trade association, representing 1.1 million
members involved in all aspects of the residential and commercial real estate
industries
A.D. Cantelmo Property Management Specializes in Property Management in Orange County
Ca.