N
ational Association of Realtors Chief Economist Lawrence Yun predicted a boost in home sales following the presidential election, citing reduced uncertainty as a key factor. Yun forecasts an 11% increase in new home sales and a 9% rise in existing home sales for 2025.

    Yun also expects a slowdown in median home price growth due to increased inventory. He warned that unsustainable price increases would lead to a divided America, where only a few could afford housing wealth. Bringing more supply into the market would help prices align with wages.

    NAR Deputy Chief Economist Jessica Lautz presented findings on buyers, noting that the median age of first-time homebuyers is 38, the highest recorded, and 17% of households are multigenerational. She also reported that 26% of home sales were all-cash transactions, as previous homeowners used equity to bypass mortgages.

    A looming question for 2025 is the impact of potential mass deportation programs on the construction industry. The American Immigration Council estimates that 14% of US construction workers are undocumented. Experts warn that removals could push up construction costs and lead to delays in building new homes, making housing less affordable.

    In a local market update, the Huntsville Area Association of Realtors reported rising inventory levels, with single-family units increasing by 27.7% and townhouse units seeing a 107.3% jump. Pending sales of single-family units rose by 23.7%, while pending sales of townhouse/condo units decreased by 41.7%.