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Forecast: Fla. home sales to rise 8-10% in 2016

ORLANDO, Fla. – Dec. 14, 2015 – “For most of 2015, the Florida real estate market has outperformed the nation as a whole,” says Florida Realtors Chief Economist Dr. John Tuccillo.

In recent months, however, the Florida market rise has eased off a bit – “catching its breath after a very hectic late summer and early fall,” says Tuccillo.

“For 2016, we expect this settling down to continue,” he continues. “Against the backdrop of an expanding state economy with growing employment, home sales should increase by 8-10 percent over 2015 (numbers) and home prices (measured as actual value) should rise by about 5 percent.

Tuccillo notes that a few conditions could impact 2016′s outlook.

“The biggest potential snag to this forecast at the state level is the growing shortage of workforce housing in the more populated areas of the state,” he says. “Florida is attracting jobs, and we need to do a better job creating housing options for the workers we are attracting from out of state.”

National issues could also influence Florida real estate sales in 2016.

“On a national level, rising interest rates may cause a dent in the market, but it will not have a significant effect,” Tuccillo says. “The new closing rules (TRID or Truth in Lending Disclosure) could cause delays in processing and may (affect) a significant number of sales.”

International issues could also have an impact since the Sunshine State real estate market relies on foreign buyers.

“Looking a bit farther afield, weak economic growth in other countries will dampen international demand for Florida real estate – but foreign buyers will remain a noticeable presence in the market,” Tuccillo predicts.


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