NAR Chief Economist Lawrence Yun predicts a 9% rise in home sales in 2025 and 13% in 2026, with mortgage rates stabilizing around 6%. Speaking at the 2024 NAR NXT conference, Yun noted that 2023 and 2024 were tough years for home sales due to inventory shortages and high rates, but he anticipates improvement as mortgage rates settle and job growth remains strong. He emphasized the wealth benefits of homeownership, contrasting the high median net worth of homeowners with renters. Yun suggests several interest rate cuts are likely by 2025, which could ease homebuying challenges if supply issues and the budget deficit are addressed. He forecasts modest price increases in median home prices—2% annually through 2026—and a gradual recovery in the housing market.
Source: https://bit.ly/48TI1Ua
By: Jon Iacono