Economists Confirm: Get Into the Housing Market Now

I know it’s wintertime, but the sun always rises, friends! The Chief Economist for the National Association of Realtors (NAR), Lawrence Yun,  just forecasted an increase in home sales for 2025 and also reports that sales will climb in  2026!

With a large inventory on the market and mortgage rates stabilizing, this is fabulous news for anyone looking to close on a home purchase. 

Household Equity Is At an All-Time High

Congrats, current Tampa homeowners: your investment paid off, and your home is worth far more than when you purchased it. In fact, homes appreciated to the tune of $35 million. Yun pointed out that the estimated median net worth for homeowners was $415,000, while for renters it was only $10,000 in 2024. In fact, Yu said flat out that investing in real estate is where it’s at, and the time is now: 

“Homeowners’ wealth steadily rises while renters’ wealth does not,” said Yun. “If you don’t enter the housing market, you are in the renter class where wealth is not being accumulated. If you want to participate in the housing market, the sooner you get in, the sooner you accumulate wealth.”

6% is the New Normal For Interest Rates

Mortgage rates are also stabilizing, to boot. Will we see 4% under the Trump administration? Not likely. But remember—6% is still a great rate. We just got used to abnormally low rates during the pandemic and then considered that normal when it really wasn’t. 

Expect 6-8 More Rate Cuts In Your Stocking (Well, Over the Next Year)

But the even better news is that economists predict even more rate cuts are coming! 2025 is the Year of the Snake in the Chinese Zodiac, but I’m kinda thinking it feels more like the Year of the Great Gatsby!

New Home Sales Will Climb Over the Next Two Years

And if that isn’t enough for you, new home sales are predicted to hit 9% in 2025, and a whopping 13% in 2026, with the median home price increasing by 2% in the coming years. Why?

Home sales depend primarily on the job market and mortgage rates. US job gains since March 2020 have led to record-high payroll employment as of September 2024. This makes sense: when people are employed, they’re able to buy. 

Have Questions About the Tampa Real Estate Market?

Great! I Have Answers.

If you have any questions at all about the Tampa real estate market, please don’t hesitate to reach out to me. As a longtime local resident and real estate agent, I’m always here to help my community, and you’re welcome to pick my brain about all things Tampa—anytime! Drop me a line or give me a call: 813-240-6563.