There’s no question the first full week of 2016 has been a wild one.
Slowing economic growth overseas (particularly China) and volatility in the global markets impacted the U.S. stock market and stoked fears of a slowdown in our economy. On the other end, the December jobs report was strong.
What does all of this mean for the housing market and economy in 2016? The good news is that there’s still 51 weeks left in the year.
Earlier this morning, NAR Research released this year’s housing and economic forecast. In a seven-minute video (above), NAR chief economist Lawrence Yun discusses his outlook for home sales and prices, housing supply, mortgage rates and why he believes GDP will under perform once again.
According to Yun, sustained job growth and improving inventory conditions are why he expects gains (from 2015) in new and existing-home sales. However, rising mortgage rates, tight supply, home prices still outpacing wages and shaky global economic conditions will likely hold back buyers.
Watch the video above for Yun’s complete analysis. 2016 will certainly be a tough test for housing and the economy.