Breaking Down NAR’s Latest Report: 4 Reasons Homebuyers Should Feel Optimistic About 2025

Here’s a breakdown of NAR’s latest report that brings encouraging news for potential homebuyers in 2025-2026:

The housing market is finally showing signs of positive change, according to the National Association of REALTORS® (NAR) Chief Economist Lawrence Yun’s latest forecast. If you’ve been waiting on the sidelines of the housing market, there are several encouraging developments to note:

1. Relief from High Interest Rates – Yun predicts mortgage rates will stabilize around 6% (ranging between 5.5%-6.5%), with multiple interest rate cuts expected in 2025. As he notes, “Maybe the worst is coming to an end.”
2. More Homes Coming to Market – The report brings excellent news about housing inventory, with Yun stating that “the worst of the housing inventory shortage is coming to an end.” This means more choices for buyers who have struggled with limited options.
3. Strong Sales Growth Ahead – NAR projects approximately 10% growth in existing-home sales for both 2025 and 2026, while new home sales are expected to increase by 11% in 2025 and 8% in 2026.
4. The Value of Homeownership – The report emphasizes the significant wealth-building opportunity that homeownership represents. Yun highlighted a striking statistic: the median net worth of homeowners in 2024 is $415,000, compared to just $10,000 for renters. As he explains, “If you don’t enter the housing market, you are in the renter class where wealth is not being accumulated. If you want to participate in the housing market, the sooner you get in, the sooner you accumulate wealth.”

With stable job growth, improving inventory conditions, and stabilizing mortgage rates on the horizon, 2025-2026 could present an excellent opportunity for those looking to achieve their homeownership dreams.