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Here's a quick summary of the predictions for 2025 and 2026 from the head of the National Association of Realtors, for the real estate market as a whole. Next month I will post a recap of the 2024 NJ data once the December numbers are in. Happy New Year!
Positive Outlook for 2025 and 2026
- Home Sales Projections:
- 2025: Existing home sales up 9%, new home sales up 11%.
- 2026: Existing home sales up 13%, new home sales up 8%.
- Inventory is increasing, signaling potential recovery after a challenging 2023 and 2024.
Mortgage Rates
- Rates are expected to stabilize at the low end of the current 6.08%-7.44% range.
- Despite Fed rate cuts, mortgage rates likely won't drop..
Home Prices
- Slower price growth predicted: (Nationally)
- 2025: Median home price $410,700 (up 2%).
- 2026: Median home price $420,000 (up 2%).
Changing Buyer Demographics
- All-Cash Buyers: Record 26% of sales, with 31% of repeat buyers.
- Older First-Time Buyers: Median age is 38, with high down payments (9%, a 30-year high).
- Multigenerational Households: At an all-time high (17%) due to cost savings and caregiving needs.
- Single Buyers: Women outpace men, accounting for 24% of home purchases compared to men’s 11%.
If you have any questions about the market in your area, feel free to reply to this email or call me.
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