The housing market had its best year of the decade in 2015, and existing-home sales are expected to grow at a more moderate pace in 2016, according to a video from National Association of Realtors Chief Economist Lawrence Yun.
He predicted that existing-home sales will increase by 1 percent to 3 percent in 2016.
In the video, Yun said pent-up demand, sustained job growth and an improving inventory point to big gains in 2016, but rising mortgage rates, home prices outpacing wages and unpredictable global economic conditions will hold back a stronger pace of sales.
He also predicted that housing shortages will still affect home prices.
“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,” he said. “Once the spring buying season begins, we’ll begin to feel that again.”
