The positive recent news for existing-home sales is predicted to last through the whole year, closing out 2016 as the best year in a decade, according to an economic forecast forum at the 2016 Realtors Legislative Meetings Trade Expo.
Lawrence Yun, chief economist of the National Association of Realtors, forecasts existing sales to finish 2016 at a pace of around 5.40 million – the best year since 2006 (6.48 million).
“The housing market continues to expand at a moderate pace in spite of the fact that home prices are rising too fast in some areas because of insufficient supply fueled by the grossly inadequate number of new single-family homes being constructed,” said Yun.
“The good news is that pending sales in recent months have remained stable and should support a modest gain in home sales heading into the summer.”
At the time, Yun said that the month’s pending sales increase signaled a solid beginning to the spring buying season.
After accelerating to 6.8% in 2015, Yun predicts that the national median existing-home price will fall between 4% and 5% this year.
As it stands, potential homebuyers are still basking in historically low interest rates, with mortgage rates dropping to their lowest point in three years.