By Housing News Report Staff
QUICK TAKES:
Alex Villacorta, Chief Economist Clear Capital
Two most important housing market trends to watch in 2016 will be the continued growth of rental rates and the moderating trend in home prices. The pattern seen in 2015 was largely characterized by a white-hot rental market, and if this continues, more households will likely choose to rent over buy in 2016.
Jonathan Smoke, Chief Economist Realtor.com
Demand for for-sale housing will grow and will continue to be dominated by older millennials, aged 25 to 34. This demographic has the potential to claim a third of home sales in 2016 and represent 2 million home purchases.
Douglas G. Duncan, Chief Economist Fannie Mae
Lot of discussion of the need for subsidy but the real problem is lack of income growth for low and moderate income households.
Matthew Gardner, Chief Economist Windermere Real Estate
I expect that we will see more homes for sale. Homeowner equity started to recover in 2013 and has been steadily improving since that time. As such, I expect that it will increase their likelihood of selling.
Mark Zandi, Chief Economist Moody’s Analytics
The most important housing market trend in 2016 will be the developing housing shortage. New housing construction has picked up in recent years, but remains well below that needed to meet demand from newly formed households.
Peter Muoio, Chief Economist Auction.com
Wage growth will be the key new ingredient for the housing recovery. We have been watching signs of accelerating wage growth percolate through different data sources but 2016 will see clear and convincing evidence of rising wages. This will help with housing affordability and be the final ingredient for higher household formations and housing demand.
