This year was the strongest year for existing homes sales since 2006. Conditions probably won’t allow sales to maintain that momentum in 2017, though.
According to Realtor.com, existing home prices are projected to increase 4 percent next year, down slightly from the 5 percent growth experienced in 2016. The pace of sales is also expected to slow to 2 percent, down from 3.3 percent this year.
A lack of affordable existing homes and rising mortgage rates are the main factors that will slow sales growth.
The figures come from a quarterly survey of 2,800 U.S. households from the National Association of Realtors.
According to the survey, about three-quarters of current homeowners who are over 45, make more than $50,000 a year, and live in the Midwest or South were the most confident that now is the time to close on the homes of their dreams. They are typically the most financially stable or live in the most affordable regions of the country.