Realtor.com predicts that single-family home sales in the Boston metropolitan area will increase more than 10 percent compared to 2015, a year that has seen many sales price records broken. It also predicts single-family home prices to rise 6 percent in 2016.

The report said Boston has a 4 percent higher share of 25- to 34-year-olds than the national average and that the area also ranked highly in demand for the 45- to 54-year-old demographic.

The report breaks it down to the basic issues of supply and demand.

“Inventory in this market moves 22 days faster than the U.S. overall (median days on market is 59 vs. 81, respectively),” the report said. “Inventory is also moving faster than this time last year, and it is also declining faster than the U.S. overall (median days on market down 10 percent versus 7 percent year-over-year, respectively). On the demand side, listings in this market get approximately 1.7 times more views than the U.S. overall.”

The report said the Boston-area labor force is growing at twice the national average, fueling home sales.

“While the drop in the unemployment rate has been lower than the national average, the strong increase in the labor force in this context indicates that long-term unemployed or discouraged workers, who previously gave up on employment are now coming back into the labor force,” the report said.

The report said Millennials, Gen X-ers and retirees will account for the majority of the 6 million homes it predicts will sell in the U.S. in 2016. Nationwide, it predicts moderate, but solid growth in existing home sales. The report forecasted existing home sales and prices will be up 3 percent nationally in 2016 due to an expected increase interest rates, tightening credit standards and lower affordability.

Realtor.com Predicts Increased Demand For Boston-Area Real Estate In 2016

by Banker & Tradesman time to read: 1 min
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