The New York Times offered four predictions for next year. For instance, even with rising mortgage rates, buying will still be a better option than renting in most of the largest metro markets.
Other predictions were that home price appreciation will continue to rise slowly (between 3 and 4.5 percent nationally), that more first-time buyers will purchase a home, and that buyers could make their move in January and February, as opposed to the spring.
“Rates are going up, and buyers have seen prices rising and will want to get in before they go up higher,” Jonathan Smoke, the chief economist of Realtor.com, said. “And the third factor is, what’s the alternative? Renting is becoming increasingly expensive.”