2016 Real Estate Market Projections

Real Estate Projections for 2016

Now the 2015 is just about in the rearview mirror, many of us are looking ahead to 2016 and gearing up for what should be another positive year for the Palm Beach real estate market. But given the past 12 months have seen huge increases in key areas like new construction, it’s safe to say we could be heading for somewhat of a slowdown in 2016.

Last month, The Wall Street Journal caught of with the chief economist at the National Association of Realtors to discuss what we could be facing over the course 2016 and here’s a quick glance at to expect:

  • Home sales should still increase but still be lacking in first-time home buyers, especially as mortgage rates continue to rise.
  • Expect more than 5.4 million existing single-family homes to be sold next year, up from 5.3 million homes sold in 2015.
  • Median home prices won’t grow as much as the 6% we saw in 2015, but still expect the annual growth rate to be somewhere around 5%.
  • Mortgage rates for a 30-year fixed are expected to rise from 3.8 to 4.5%, making homes even less affordable to first-time buyers.
  • Rising rent prices should motivate younger buyers to stop delaying the purchase of a new home, especially in expensive markets like California, South Florida, and much of the East Coast.

Dylan Snyder is a seasoned real estate professional serving the Jupiter real estate market, Palm Beach real estate market, Palm Beach Gardens real estate market, North Palm Beach real estate market, and the surrouding Palm Beach County area. Along with being a top producer in Jupiter real estate, Dylan's professionalism and expertise in luxury and waterfront real estate sets him and his team of real estate experts apart from the competition. For more information on Jupiter and Palm Beach real estate for sale, contact Dylan at (561) 951-9301.

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