Realty News Report
National Association of REALTORS® Chief Economist Lawrence Yun imparted some optimistic real estate prognostications to professionals attending a “Residential Economic Issues & Trends Forum” during NAR’s 2024 REALTORS® Legislative meetings.
Right off the top, the economy chief predicted that interest rates will fall in the long term – a financial decision home buyers and sellers have looked forward to for a while.
Yun also forecast that 2024 existing-home sales will rise to 4.46 million (up 9 percent from 4.09 million in 2023) and 2025 existing-home sales will increase even further, to 5.05 million (up 13.2 percent from 2024) – with further gains coming in eight of the next 10 years.
Rents “will calm down further, which will hold down the consumer price index and make the Federal Reserve cut interest rates.” Based on data from April, he noted that the U.S. employment sector boasts six million more jobs today compared to pre-COVID highs. And the newly added employment numbers “are helping to boost home prices.
More jobs mean more home sales and higher housing demand,” said Yun. “You need a strong local economy for a strong housing market.”
He also added some positive comments about the real estate sector. The referral business is key,” Yun told the crowd of REALTORS®. “Your past clients are super happy in terms of their wealth gains. Seven percent mortgage rates are high compared to a couple of years ago, but you have to buy a home in order to build wealth. Have Americans lost the dream of homeownership? I don’t think so.”
Read the full article
