What to Expect in 2016

Overall, the Northern California’s housing market enjoyed a good year in 2015, although a shortage of homes on the market posed a challenge for many homebuyers. Double-digit price increases from a year ago were common in many communities, along with multiple offers on some homes, while the limited inventory helped keep a lid on home sales. As 2016 begins, many industry experts believe we’re heading towards a more balanced market, one in which inventory will gradually increase and sales will climb at a moderate rate. If the forecast holds true, it could be welcome relief for potential homebuyers who may have been frustrated by last year’s heated marketplace and the limited number of homes from which to choose. The National Association of REALTORS® (NAR®) forecasts home sales nationwide to rise approximately 3 percent in 2016 to 5.45 million units, up from an estimated final tally of 5.3 million units in 2015. The national median existing-home price is expected to rise to around 5 percent in 2016. (more…)