The worst of the housing inventory shortage is coming to an end, mortgage rates are stabilizing and job additions are continuing, according to NAR Chief Economist Lawrence Yun.
“2024 has been a very difficult year on many fronts. We did not get the home sales recovery this year after an awful 2023.”
However, Yun explained that household equity in real estate is at a record high. This means there has been a huge increase in wealth for Realtors®’ past clients, to the tune of $35 trillion. Yun highlighted the glaring difference in estimated median net worth between homeowners ($415,000) and renters ($10,000) in 2024.
Yun addressed mortgage rates during a second Donald Trump presidency, saying, “Mortgage rates in his first term (at 4%) were the good old days. Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%. That will be the new normal, bouncing around 5.5%-6.5%.”
“Directionally, I think there’s going to be roughly a 10% boost of existing-home sales in 2025 and 2026.”
Yun projects new home sales to be 11% higher in 2025 and 8% higher in 2026. Yun forecasts the median home price to be 2% higher in both 2025 and 2026.
Comentarios