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NAR Economic Update - May 2024

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NAR Economic Update - May 2024

The chief economist of the National Association of Realtors expects home sales to increase in 8 of the next 10 years; see his analysis below. Others see the problem continuing and believe the solution lies in more rental properties (such as in this article from the WSJ – Remember, renting always costs more in the long run if you are not building equity, and the people pushing this narrative are the same people who stand to make money from these rentals!)

NAR Chief Economist Lawrence Yun optimistic about real estate industry this year and beyond

Dr. Yun expects interest rates to drop and home sales to pick up during the rest of the year and into 2025. He shared his outlook this week during NAR’s REALTORS® Legislative Meetings in Washington, D.C. He projected existing home sales to increase to 4.46 million nationwide, a 9% increase from 4.09 million in 2023. He also predicted existing home sales to jump to more than 5 million in 2025 and show gains in eight of the next 10 years.

Yun pointed to April employment data, which showed 6 million more jobs than pre-COVID highs. Those job numbers, he said, are boosting home prices. “More jobs mean more home sales and higher housing demand,” said Yun. “You need a strong local economy for a strong housing market.”

Full Economic Update Data Here


The entire country has seen home prices appreciate at a rapid rate. Illinois has actually seen one of the slower rates of price increases compared to most other states.



A lot has changed since 1995, including a population increase of 70 million people and an addition of 40 million payroll jobs to our economy. And yet, we see the same number of homes selling.



It’s no surprise to see inventory has been decreasing year over year, but there are indicators that we are reaching the end of this cycle.