In a recent analysis, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), forecasts a significant rebound in the U.S. housing market over the next two years. He projects a 9% increase in home sales for 2025, followed by a 13% rise in 2026, attributing this optimism to stabilizing mortgage rates expected to hover around 6%.
Yun suggests that the challenges of high borrowing costs and low inventory may be easing, with homeowners potentially seeing a 2% increase in home prices in both 2025 and 2026. He emphasizes the wealth accumulation benefits of homeownership, noting a stark contrast between the median net worth of homeowners at approximately $415,000 compared to renters at $10,000.
These projections indicate a cautiously optimistic outlook for the housing market, with anticipated job growth and increased household equity contributing to a potential rebound in the coming years.