Chief Economist Lawrence Yun of the National Association of Realtors believes home sales will improve in the latter half of the year, predicting a 3% increase in national median home prices in 2025. Despite a sluggish start to 2024, Yun projects a rebound with existing-home sales up by 6% and new-home sales by 10%. This optimism hinges on a decrease in mortgage rates to 6.4% by year-end, amid ongoing labor market growth. However, initial recovery signs have not materialized as anticipated, with housing activity still slow compared to the previous year.
The mortgage rate is the magic bullet, and we are just waiting and waiting as to when that could come down.
Home prices are not on the verge of a nuclear crash, pointing to low levels of serious mortgage delinquencies.
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