February Home Sales Forecast: The Slow Start Will Continue

March 3, 2016

Thanks to weak pending home sales in January and two consecutive months of shrinking housing starts, Zillow is expecting 2016 to get off to a slow start on the home sales front.

Sales from January to February are expected to decline 2.2 percent to 5.35 million units at a seasonally adjusted rate. This figure would put existing home sales at a 6.2 percent gain over February 2015.

For three of the past four months, single-family housing starts have shrunk. In December they shrunk by 3.9 percent and in January they shrunk by 3.2 percent. Texas accounted for 15 percent of single-family construction permits issued in 2015 by itself, but because of the oil price crash slowing employment, new construction in Texas and other energy dependent states could suffer in 2016.

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