Realtor.com: Providence market to sizzle in new year

PROVIDENCE – The real estate market in greater Providence will sizzle in 2016, according to Realtor.com, a national online real estate site that predicts as much as 10 percent growth in median sale prices.
The market is experiencing a combination of factors that bode well, according to its analysis, including pent-up demand for houses from young Generation X and millennial buyers, and economic spillover from the pricier Boston area.
The inventory in metro Providence moves six days faster than the U.S. average, and it’s also selling faster than it did a year ago. In 2016, Realtor.com expects the number of sales to increase by more than 10 percent, and median single-family home prices to rise by 10 percent as well.
The prediction, by the site’s chief economist, is also influenced by limited growth in new construction of homes.
Providence will lead the site’s Top 10 list of growth markets for 2016, followed by St. Louis, San Diego, Sacramento, Calif., Atlanta, New Orleans, Memphis, Tenn., Charlotte, N.C., Virginia Beach, Va., and Boston.
Among millennials, expected to make up the largest demographic of homebuyers in 2016, Atlanta will be the top market, followed by Pittsburgh, Memphis, Boston and Austin, Texas. Nationally, millennial buyers favor short commutes and older homes, leading to a trend of buying in cities and close-in suburbs.
Younger Generation X buyers, those aged 35 to 44, will account for another 20 percent of home buyers. Two-thirds of them already own a house, and will be moving up from starter homes into a larger house or a more desirable neighborhood, according to Realtor.com. For this generation, Atlanta, Denver and St. Louis will be the top markets, followed by Charlotte and Columbus, Ohio.

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