2025 Housing Market Outlook: Insights from NAR's Lawrence Yun

September 29, 2025 - 02:01

As we look ahead to 2025, the housing market is poised for significant changes, according to Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR). Yun predicts a gradual increase in home sales, driven by a combination of factors including demographic shifts and improving economic conditions.

One of the most pressing concerns for potential buyers remains mortgage rates. Yun anticipates that while rates may remain elevated compared to historical lows, they will stabilize, making homeownership more accessible for many. This stabilization is expected to encourage a resurgence in buyer activity, particularly among first-time homebuyers who have faced challenges in recent years.

Inventory levels are another critical aspect of the housing market. Yun forecasts a modest increase in available homes for sale, which should help alleviate some of the intense competition experienced in previous years. However, the overall supply may still fall short of meeting demand, keeping upward pressure on home prices.

In summary, the 2025 housing market is expected to experience a blend of rising sales, stabilizing mortgage rates, and a gradual increase in inventory, setting the stage for a dynamic real estate landscape.