2023 saw existing-home sales hit their lowest levels in nearly three decades, largely because homeowners were locked into ultra-low mortgage rates, housing inventory was scarce, and interest rates were climbing. Yet, when viewed through a broader lens, the picture changes: 4 million existing-home sales<\/strong> in 2023 equaled the total from 1995<\/strong>, despite the U.S. population being notably smaller back then. This reveals a wellspring of pent-up housing demand<\/strong> that could potentially fuel robust sales over the next eight out of ten years.<\/p>\n\n\n\n The market may already be turning a corner. In February (year unspecified), existing-home sales surged 9.5% month-over-month<\/strong>\u2014adjusted for seasonality and a leap year\u2014backed by a 10% boost in inventory<\/strong>. Still, the Northeast bucked the trend: sales fell by 10%, though prices rose\u2014likely a result of ongoing supply constraints and pursuing multiple-offer scenarios.<\/p>\n\n\n\n A court\u2011pending settlement\u2014aimed at changing how buyers and sellers approach agent compensation\u2014adds a wildcard element to the outlook. The proposal would retain consumer choice by allowing compensation off\u2011MLS while encouraging cooperative agreements between listing and buyer brokers. Its full impact remains uncertain, but NAR anticipates that if listing agents effectively communicate the benefits of cooperation (like attracting more buyers), sellers may continue to see value in such arrangements\u2014especially for first-time, underrepresented, or veteran homebuyers<\/p>\n\n\n\nEmerging Signs of Recovery<\/h3>\n\n\n\n
The Settlement\u2019s Role: A Wildcard<\/h3>\n\n\n\n
\n\n\n\nA Glimpse Into the Future<\/h3>\n\n\n\n