Total homes sales next year are expected to reach the highest levels since 2006 on the back of new construction and the existing housing market, Realtor.com reported Wednesday.
The report contains several surprises. Among them, Providence, Rhode Island, ranked as the hottest market for 2016, and millennials are expected to make up the biggest demographic of homebuyers next year.
Sales of existing and new home sales are expected to reach 6 million for the first time since 2006. The pace of growth of existing home sales and prices is expected to slow to 3 percent but remain strong overall. Meanwhile, new home sales are seen increasing 16 percent.
Realtor.com anticipates new home starts will increase by 12 percent.
And those new homes are becoming more affordable, Realtor.com Chief Economist Jonathan Smoke said Wednesday.
“What you’ve seen in the last couple of years is that builders have been avoiding that more affordable entry-level price point,” he told CNBC’s “Squawk Box.” http://goo.gl/1CkJqb