According to new consumer survey findings and a 2017 housing forecast update from the National Association of Realtors, existing-home sales are expected to notch a small gain in 2017. Sales are forecast to grow roughly 2 percent next year to around 5.52 million. The national median existing-home price is expected to rise to around 5 percent this year and 4 percent in 2017. By the end of next year, mortgage rates are expected to reach around 4.6 percent.
“Although the economy is expected to continue to expand with around 2 million net new job creations, existing home sales are expected to see little expansion next year because of affordability tensions from rising mortgage rates and prices continuing to outpace income growth,” said Lawrence Yun, NAR chief economist.
Yun expresses hope that continued job growth, any economic stimulus from the new administration and more millennials reaching their prime buying years will keep housing demand on solid footing. He believes the key will be inventory. However, more expensive mortgage rates could also slow the pace of homeowners listing their home for sale.
