High prices will exclude many first-time buyers from entering the market
Economists at the National Association of Realtors say that home sales will continue to grow next year but will face headwinds, The Wall Street Journal reports.
Hurdles include a lack of first-time buyers and rising mortgage rates. Lawrence Yun, the association’s chief economist, projects median home prices to grow at an annual rate of 5 percent compared to 6 percent of this year.
Moreover, sales for existing homes are projected to pass 5.4 million, compared to an estimated 5.3 million homes sold in 2015.