NAR economists weigh in on home sales and mortgage rates—and how the election results, the economy and changing buyer demographics could impact your real estate business in the year ahead.

The last two years have been tough for many people who work in home sales or who were in the market to buy or sell, but the worst may be over, according to Lawrence Yun, chief economist of the National Association of REALTORS®.

According to a recent report, Yun’s forecast for the housing market for 2025 and 2026 shows an outlook for higher home sales and moderating mortgage rates.  

The data shows growth in all-cash buyers, multigenerational purchases and single buyers.

On the selling side, homeowners are feeling richer from the rapidly rising prices of the past few years. Now, more listings are coming up for sale, and the economy is seeing improvement. All those factors could get more Americans moving in the year ahead, he said

Here’s an overview of NAR’s predictions on key housing indicators for the year ahead.

Home Sales to Rise

With improving job numbers and recent gains in the stock market, more Americans may be motivated to act, Yun said. Yun predicts an uptick of nearly 2 million jobs for 2025 and another nearly 2 million increases in 2026, which could bode well for the housing market.

Other good signs: Inventory of both new and existing homes is increasing, and the U.S. population has grown by 70 million from 1995, even though home sales have remained mostly at 1995 levels, signaling pent-up demand.

Here’s Yun’s forecast over the next two years:  

• 2025 sales projection: Existing home sales to rise 9% year-over-year; New home sales to jump by 11%.

• 2026 sales projection: Existing-home sales to rise 13% year-over-year; new home sales to increase by 8%.

Source: National Association of REALTORS®

Thought for the Day:The best way to make your spouse and children feel secure is not with big deposits in bank accounts, but with little deposits of thoughtfulness and affection in the “LOVE ACCOUNT”

(Zig Zigler)