Housing sales expected to grow in 2016
Posted on Monday, November 16, 2015 at 9:43:41 AM
Existing-home sales are projected to moderately increase in 2016, an encouraging sign for the housing market following its best year since the collapse. A press release from the National Association of Realtors suggested that more robust sales may be tempered by residential financing rates - the Federal Reserve is expected to raise rates slightly next month - and some instances of restricted home inventory. Still, the forecast calls for home sales to grow about 3 percent next year, to around 5.45 million, up from 2015's 5.30 million.
Lawrence Yun, the National Association of Realtors' chief economist, stated that "Sales activity in 2016 will once again be primarily driven by the ongoing release of more pent-up sellers finally realizing their equity gains and using it towards the down payment on their next home."
Concern over the homebuying habits of young people seem to have been put to rest. According to The Dallas Morning News, about 75 percent of millennials that purchased homes this year (they accounted for 30 percent of sales nationwide) did so coming out of apartments. Mr. Yun said the millennial "data does show that young adults view homeownership as a good financial investment and part of their personal American dream."