Survey finds that sales growth is expected to reach 7.6 percent or better
Even with expensive house prices, rising mortgage rates, and tightening inventory, a good percentage of brokers expect home sales growth to increase in the “high single digits,” which, if pegged at 7.6 percent, would be more than double the 3.3 percent growth of 2016.
MarketWatch reports that, in a survey of brokers conducted by MKM Partners, 46.4 percent of respondents expect 5 to 10 percent home sales growth in 2017, and 32.8 percent are even more optimistic, forecasting 10 percent growth or better.
Nearly half of respondents predict “stable” inventory levels in their market this year. More than 40 percent of the brokers said that rising mortgage rates were their biggest concern for the upcoming year.
While two-thirds of respondents thought higher rates would have at least a mild negative effect on sales prices, 10% actually think higher rates will have a positive impact. But brokers are expecting slightly slower price growth than before, perhaps, MKM wrote, due to “some concerns about pricing having risen too high.”