Total sales for existing and new homes are expected to reach six million for the first time since 2006 next year, according to a 2016 housing forecast issued by realtor.com.
Gains in new-home construction and existing home sales are both expected to push total home sales to the highest levels in years. The new-home construction market is expected to see the most gains in 2016, with a 12 percent year-over-year increase in housing starts and a 16 percent year-over-year growth in new home sales.
The gains in existing-home sales are expected to be more moderate, with expectations of a 3 percent year-over-year gain.
“Next year’s moderate gains in existing prices and sales, versus the accelerated growth we’ve seen in previous years, indicate that we are entering a normal, but healthy housing market,” said Jonathan Smoke, realtor.com’s chief economist.
“The improvements we’ve seen over the last few years have enabled a recovery in the existing-home market, but we still need to make up ground in new construction, which we could begin to see in 2016. New home sales and starts will bring overall sales to levels we have not seen since 2006 and will help set the stage for a healthy new home market.”