At the NAR NXT conference, Chief Economist Lawrence Yun predicted a 9% increase in existing home sales for 2025 and 13% in 2026, alongside an 11% rise in new home sales in 2025 and 8% in 2026. Key drivers include stabilized mortgage rates around 6% and improved inventory levels.
Implications for LA Buyers and Sellers
- Buyers: A 6% mortgage rate could make homeownership more accessible, especially with increased inventory projected.
- Sellers: Higher sales volume signals growing demand, which could result in competitive offers, particularly for well-priced homes.
Our Take on These Projections
While Yun’s optimism is encouraging, LA’s unique market dynamics and unpredictable rate changes make real-time data more reliable than long-term forecasts. The last projections for 2024 were overly optimistic due to unforeseen rate hikes. Flexibility and a localized strategy will remain crucial in navigating the Los Angeles real estate market.
Contact Westside Los Angeles Luxury Real Estate Broker Abdo Pierre Faissal at Nourmand & Associates for more information 310-620-1038 / [email protected]