Y
un expects existing home sales to rise 9% next year and potentially more in 2026, despite recent market unpredictability. Speaking at the National Association of Realtors' NAR NXT conference, Lawrence Yun forecasted a rebound in the housing market after two years of sluggish sales. He based his predictions on stabilizing mortgage rates, a growing job market, and increased inventory for homebuyers.

    Yun's previous forecast last year called for even more significant increases: 13% for existing home sales and 19% for new home sales in 2024. However, this was predicated on lower inflation and mortgage rates around 6%. Instead, higher-than-expected inflation drove rates up, leading to low inventory levels and elevated home prices.

    Yun acknowledged that 2024 has been a challenging year, with existing home sales at an annualized rate of 3.84 million in September, the lowest since October 2010. A rebound next year will depend on consumer acceptance of higher mortgage rates, which Yun expects to remain elevated, potentially in the 5.5% to 6.5% range due to government borrowing and a budget deficit.