T
he National Association of Realtors (NAR) hosted its annual Forecast Summit, with NAR Chief Economist Lawrence Yun leading an online panel discussion. A key takeaway from the event is that mortgage rates are expected to remain relatively stable in 2025.

    Yun attributed this prediction to the national deficit, which he believes will limit long-term interest rate reductions despite potential Federal Reserve cuts. "We don't need a single-year solution," Yun said. "A credible plan to reduce the national debt over time could lead to more meaningful mortgage rate decreases."

    Despite concerns about the impact of the incoming Trump administration's policies on the construction industry, Yun expressed optimism about existing home sales in 2025. He cited factors such as growing starter home inventory and increasing first-time buyer activity.

    However, Realtor.com Chief Economist Danielle Hale forecasted a more modest 1.5% year-over-year increase in existing home sales for 2025. The construction industry's future remains uncertain due to policy concerns, but potential tax cuts and reduced regulations may offer some mitigation.

    Locally, the Huntsville Area Association of Realtors reported an uptick in pending sales for single-family units (up 26%) and townhouse/condo units (up 120%). New listings of single-family units decreased by 8.4%, while new townhouse unit listings increased by 171.4%. Inventory levels continued to rise, with a 22.9% increase in single-family units and a 92.8% jump in townhouse units.