National Association of Realtors® Chief Economist Lawrence Yun has given us his economic forecast for 2016. He believes that we will see a rise in national real estate sales but it will be minimal. 2015 saw in increase of 7% in home sales from the previous year. Yun forecasts that we will only see a rise of 1-1.5% in 2016. He believes that this will be due to the overall economy in the United States and the lack of manufacturing. He is projecting a rise in pricing of 4-5% in 2016 due to the shortage of supply. In 2015 prices were up 6% from the previous year.
Yun believes that we will see bumps in the interest rate depending on what is happening in the stock market and overall economy, but we will eventually peak at 4.5%. This is still a great interest rate. We should also see a rise in first time homebuyers in 2016. Employment is better than it has been in years and recent surveys say that most renters still strive to purchase one day.
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Here in Flagstaff we believe we will see a similar trend. Our inventory is incredibly low right now so we may see prices spike even higher. If you have been thinking about buying or selling 2016 may be the year! Please contact Us and we would love to talk about your situation.