Real estate predictions for 2016. The experts all seem to agree.
“With hot markets in the West and Northeast cooling down; markets in the South and Midwest could experience an uptick in home sales.” — Trulia prediction for 2016
The experts don’t always get it right when predicting real estate trends (i.e. 2015 mortgage interest rates), so it’s fair to ask if it’s worth it to consult them on their predictions for 2016. Fair question. The answer is twofold.
First, for all of you who might be buying or selling a Nashville home in the coming year, a lot could ride on the larger market factors that impact buyer and seller attitudes.
And second, it’s fun. It’s even more fun to look back and see who got it right and who got it wrong.
But putting together a roundup of real estate predictions for 2016 requires some digging. To start with, you have to throw out all the real estate predictions for 2016 that are over a month old. A month may not seem like such a long time, but when you’re talking about real estate predictions, it can turn into too long (especially if what you predicted for the New Year has already headed in the wrong direction).
At this point, that hasn’t happened to any of these prominent national real estate prediction sources. Let’s see what they have to say.
• Realtor Magazine – ‘Normal’ is coming. Healthy growth in home sales and prices at a more normal pace
• CoreLogic — Interest rates will gradually move higher but dollar volume of single-family mortgage originations will fall approximately 10% [reason given: refis will fall]
• Housingwire — Moderate growth in housing prices and sales (3.5%-4.5%); easier credit; more first-time home buyers
• BofA Merrill Lynch Global Research—Further expansion in U.S. housing. The “good news for anyone planning to sell a home in 2016” is that existing home sales could increase by as much as 5%; good news for buyers: a slowdown in home-price appreciation
• Trulia — “general consensus at the national level…another good year” with hot markets in the West and Northeast cooling down; markets in the South and Midwest “could experience an uptick” in home sales.
The researchers and prognosticators giving us these projections seem to be all be in agreement, at least as we march into 2016. Whether or not you will be entering Nashville/Franklin real estate any time soon, it’s very good news that the major players who forecast future trends agree that conditions look to be settled, stable and hospitable in the coming year.
There is one thing I know you can count on: I’ll be here for you in 2016, ready to help you with any real estate needs you might have.