Existing-home sales are expected to finish the year at their highest pace since 2006, but accelerating growth and rising mortgage rates have the potential to slow sales, according to a recent economic forecast by Lawrence Yun, Chief Economist of the National Association of Realtors.
Yun said existing-home sales are measurably higher than a year ago, and strengthened in March as more buyers entered the market as the spring buying season got underway. “Sustained job growth and interest rates below 4 percent have been the catalyst behind the improvement in sales,” said Yun. “The demand for buying is especially strong in parts of the country where jobs gains and economic activity have outpaced the rest of the nation – particularly in states like Utah and Florida and cities such as Denver.”
Yun expects home sales to rebound and steadily improve to a pace of 5.3 million this year and 5.5 million in 2016 with prices rising to around 6% this year before moderating to 4 percent in 2016