Home sales are primed to increase in 2017, according to predictions from the National Association of REALTORS® (NAR), the Mortgage Bankers’ Association (MBA), Freddie Mac and Fannie Mae, and more.
NAR is expecting existing-home sales to eclipse 6 million in 2017, up from its 5.8 million forecast for 2016. But the other establishments are even more optimistic. MBA is expecting home sales to eclipse 6.5 million next year, while Fannie Mae and Freddie Mac are both forecasting 6.2 million.
Meanwhile, new-home construction starts are anticipated to climb to about 1.5 million per year until 2024, predicts Forisk Research.
Home builders are probable to be more subdued, despite demands for additional inventory. “Home builders’ behavior likely is still cautious because of their experience during the crash,” Pantheon Macro Chief Economist Ian Shepherdson told MarketWatch. “No one wants to be caught with excess inventory during a sudden downshift in demand. In this cycle, the pursuit of market share and volumes is less important than profitability and balance sheet resistance.”
As always, unanticipated events in the coming year could render all of these forecasts moot. But there is one thing we can guarantee about 2017: It will be interesting.