As we look toward 2025, the housing market is set to offer fresh opportunities for both buyers and sellers. Predictions point to a rise in home sales, more stable mortgage rates, and shifting buyer demographics. Lawrence Yun, Chief Economist of the National Association of REALTORS® (NAR), highlights the key trends to watch in the coming years. Here's what you can expect:
Predictions for 2025
- Existing home sales will increase by 9% year-over-year.
- New home sales are projected to rise by 11%.
- Median home price will reach $410,700, up 2% from 2024.
Looking Ahead to 2026
- Existing home sales to climb by 13% year-over-year.
- New home sales to rise by 8%.
- Median home price is projected to hit $420,000, a 2% increase over 2025.
Housing Inventory: A Shift Toward Balance
Traditionally, a balanced housing market requires 5 to 6 months of inventory. In August 2024, NAR data showed a healthier 4.2-month supply, up from a record low of just 1.6 months. By September 2024, the national inventory stood at 4.3 months, compared to 3.4 months one year earlier. While this offers buyers more flexibility, many areas still favor sellers.
