For real estate agents looking to better engage their clients, there’s an important message to amplify: owning a home builds wealth while renting does not. This critical insight is supported by NAR Chief Economist Lawrence Yun’s recent forecast, which outlines a promising future for home sales and values. As the market continues to shift, homeowners stand to gain, making it crucial to communicate this evolving opportunity to your sphere of influence and past clients.
Projected Growth and Rate Stability
Yun’s outlook shows a potential market resurgence, with a projected 9% boost in home sales by 2025 and a further 13% increase by 2026. These figures reflect not only growing demand but also increasing opportunities for equity building among homeowners. Additionally, Yun forecasts an 11% uptick in new home sales in 2025 and an 8% increase in 2026. Median home prices are expected to rise by 2% each year during this period, further enhancing the wealth of current and future homeowners.
Importantly, Yun believes mortgage rates could stabilize around 6%, particularly under a potential Trump administration, offering more favorable buying conditions. “Maybe the worst is coming to an end,” Yun remarked, emphasizing optimism about the market’s direction. This stability could alleviate affordability pressures, making it a pivotal period for first-time buyers or those considering re-entering the market.
Homeowners' Wealth vs. Renters' Costs
The relationship between homeownership and wealth creation is no secret. As property values appreciate, homeowners can build equity, tapping into what becomes one of the largest sources of personal wealth. Renters, on the other hand, often see housing costs as an expense without the long-term return on investment. Yun’s data underscores this divide: rising sales and home prices mean renters risk being priced out of markets or missing out on equity gains that could support future financial stability.
Marketing This Insight to Your Clients
Real estate agents should leverage these projections to illustrate why waiting can be costly. Sharing Yun’s predictions with clients, from stable mortgage rates to rising home values, provides concrete evidence that market timing matters. Highlighting the 9% and 13% projected growth in home sales conveys not just market optimism, but also urgency for clients considering the transition from renting to owning. Use these figures in email campaigns, social media posts, and one-on-one consultations to create impactful conversations about wealth generation.
Real Estate Supply and Demand Reinforces Market Strength
Yun’s predictions align well with insights from our previous article, “You Can't Deny Housing Supply and Demand”. Continued demand, limited inventory, and market forces will drive prices upward, creating a dynamic environment where buying sooner rather than later is a financially prudent choice. Agents can use this connection to further validate why owning property can secure future wealth and why holding off has potential drawbacks.
What This Means for Buyers and Sellers
For prospective buyers, Yun’s forecast should act as a wake-up call. Delaying entry into the market might mean higher costs and missed opportunities for appreciation. For sellers, this could represent a prime window to capitalize on market demand and favorable price growth. Regardless of market role, engaging with the right information can turn strategy into success.
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