Monday Market Update: NAR® Predicts The Worst Is Over

With regards to the housing inventory shortage. 

November is flying by; the Thanksgiving countdown is on – and with all that excitement you may have missed the latest housing analysis and predictions from the National Association of Realtors®. On November 8, 2024, a NAR® news release stated some key revelations with regards to where housing is at and where it is headed.

We encourage you to read the full release ‘NAR Chief Economist Lawrence Yun Forecasts 9% Increase in Home Sales for 2025 and 13% for 2026, with Mortgage Rates Stabilizing Near 6%’, and have summarized the 5 key forecasts below.
 

#1: Household equity is at a record high – now $35 trillion. Homeowners have a median net worth of $415,00 while renters median net worth is $10,000.

#2: A new ‘normal’ of mortgage rates is an expected ‘bounce’ between 5.5-6.5%, with Yun predicting four more rounds of rate cuts in 2025.

#3: Job additions and stabilizing mortgage rates are good news for inventory, which has already seen an increase in pending home sales in September of 2024.

#4: NAR® predicts new home sales to be 11% higher in 2025 and 8% higher in 2026.



#5: NAR® expects existing home sales to rise 10% in 2025 and 2026.

Are you excited for what 2025 could bring? Are you thinking about your future real estate goals as you reflect on your current comforts of home? This end of year season is an ideal time to enjoy and appreciate what you have, and manifest how you can best enjoy it!

Cheers,

Bobbi