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The U.S. housing market will finally turn the corner in 2026, with a double-digit increase in home sales supporting a 4% increase in home prices, according to new predictions from the National Association of Realtors\u00ae.<\/p>\n
NAR Predicts DoubleDigit Growth<\/strong> helps improve planning, consistency, and publishing quality when teams follow a repeatable workflow.<\/p>\n NAR Chief Economist Lawrence Yun<\/strong> forecasts sales volume for existing homes will rise 14% next year after three years of stagnation, and sees new-home sales rising 5%.<\/p>\n \u201cNext year is really the year that we will see a measurable increase in sales,\u201d Yun said on Friday at a NAR conference in Houston. \u201cHome prices nationwide are in no danger of declining.\u201d<\/p>\n Yun believes that job growth will remain solid in 2026, with the economy adding 1.3 million jobs. That trend, along with ongoing shortages of available housing supply, will support 4% growth in home prices next year, he predicts.<\/p>\n The optimistic forecast follows three straight years of the lowest volume of home sales since 1995, after affordability concerns pushed many prospective homebuyers to the sidelines.<\/p>\n This year, the typical age of first-time homebuyers rose to an all-time high of 40, in a clear signal that home ownership remains out of reach for many young families.<\/p>\n One year ago, Yun said he hoped that the worst of the housing downturn was over, and predicted that existing home sales would rise 9% in 2025, with new-home sales jumping 11%.<\/p>\n Those forecasts did not come to fruition, with the economist now estimating that existing home sales will remain flat at 0% growth through 2025, and new-home sales will fall 2% from last year.<\/p>\n However, Yun believes that 2026 will be the year that sales finally rebound from multidecade lows, supported by a solid job market and slight easing of mortgage rates.<\/p>\n \u201cMortgage applications have been consistently above last year, implying that people\u2019s desire to enter the market has been consistently positive,\u201d Yun said. <\/p>\n