Home Sales Expected to Increase across America in 2025
With increasing housing inventory, stabilizing mortgage rates, and job market additions, home sales are expected to increase throughout the 2025 and 2026 real estate markets, according to NAR Chief Economist Lawrence Yun.
“The worst of the housing inventory shortage is coming to an end,” said Yun during the Residential Economic Issues and Trends Forum at the 2024 NAR NXT, The REALTOR® Experience, in Boston, Massachusetts. Additionally, Yun predicts a 9% increase in Home Sales for 2025 and 13% for 2026.
“Directionally, I think there’s going to be roughly a 10% boost of existing-home sales in 2025 and 2026.” Says Yun.
Furthermore, New Home Sales are predicted to be 11% higher for 2025, and 8% higher in 2026. The median home price is predicted to be 2% higher in both 2025 and 2026, with mortgage rates stabilizing around 6%.
“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%.” Yun explained in the NAR report.
Additionally, Yun highlighted the value of homeownership as household equity in real estate reaches a record high, and the intangible value that Realtors® provide as wealth increases for their clients.