If you are a homeowner not even planning on moving, but especially if you are planning to buy or sell a new home, it is always great to see a bright 2016 housing forecast. According to realtor.com, the forecast for 2016’s upcoming year is not just bright, it is looking to be the best year since 2006. The online real estate service operated by News Corp subsidiary Move, Inc. showed that new home construction and gains in the existing market are joining forces to push total home sales to the highest they have been in 10 years.
2016 is not going to see a huge spike in sales. Instead, sales will be moderate and steady growth of home sales and lowering of prices.
“Next year’s moderate gains in existing prices and sales, versus the accelerated growth we’ve seen in previous years, indicate that we are entering a normal, but healthy housing market,” says Jonathan Smoke, chief economist for realtor.com. “The improvements we’ve seen over the last few years have enabled a recovery in the existing home market, but we still need to make up ground in new construction, which we could begin to see in 2016.”
For the first time since 2006, realtor.com predicts a whopping 6 million total sales for new and existing homes next year.
For Florida specifically, impressive gains will be seen thanks to purchases by retirees. People aged 65-74 made up 14 percent of homebuyers last year, and the trend should continue. According to realtor.com, two Florida cities are on the top five list that will see the most action from retirees.
As 2015 wraps up, the real estate market overall saw a year of positive growth with many, many happy new homeowners. With 2016’s future being full of growth in sales but also easing on prices, both homebuyers and sellers should be excited for is what to come. We at RE/MAX Paradise are excited about the 2016 housing forecast, so please reach out to us with any questions about real estate in Miami!