According to the National Association of Realtors, new and existing home sales are to continue improving in 2016 but on a more moderate pace compared to 2015.
"This year, the housing market may only squeak out 1 percent to 3 percent growth in sales because of slower economic expansion and rising mortgage rates," said NAR's Chief Economist Lawrence Yun.
"Furthermore, the continued rise in home prices will occur due to the fact that we will again encounter housing shortages in many markets because of the cumulative effect of homebuilders underproducing for multiple years. Once the spring buying season begins, we'll begin to feel that again," she added.
The data for 2015 still lacks information about deals struck in December but Yun expected that the total existing-home sales in 2015 will be around 6.5 percent or an estimated 5.26 million, the highest since 2006 but about 25 percent below the peak set in 2005, which was at 7.08 million.
In 2015, the national median existing home-sales price closed at $221,200 which is 6 percent higher from 2014's price. In 2016, Yun predicted that existing-home sales are to grow 1 to 2 percent or 5.3 to 5.4 million and prices from 5 to 6 percent.
Moreover, NARS forecasted that mortgage rates will rise by 4.7 to 5 percent by the end of 2016. But on a positive note, the group of realtors also expects a healthy job growth throughout the nation, with about 1.5 to 2 million jobs in the US this year.
The data from NARS also enumerated the likely outperforming markets for 2016. Cities included on the list are those that are foreseen a strong job growth like Grand Rapids, Riverside, Salt Lake City, Atlanta, Charlotte, Portland OR, Tampa and Providence.
Meanwhile, tight inventory conditions, increasing home prices, slow economic growth in the US and abroad plus rising mortgage rates were all cited by NARS as "potential speed bumps" in 2016.