Miniature orange house on keychain over a model home, surrounded by euro banknotes and coins. Financial planning and real estate concept.

YEAR END
2025
Elite Life Realty, INC. Report

According to recent reports from the National Association of Realtors (NAR),existing-home sales increased in October 2025, pending sales rose, and the market shows signs of a comeback in 2026 driven by lower mortgage rates and steady job growth. However, the market remains uneven, characterized by a growing gap between equity-rich, all-cash buyers and struggling first-time buyers. 

Key takeaways from recent NAR reports

Housing Market Performance (October 2025) 

  • Existing-home sales: Rose 1.2% in October. Sales increased month-over-month in the Midwest and South, held steady in the Northeast, and fell in the West.
  • Pending home sales: Increased 1.9% in October compared to September, with gains in the Northeast, Midwest, and South. The Midwest saw the fastest growth due to better affordability.
  • Mortgage rates: Lower mortgage rates contributed to the increase in home sales in October.
  • Market trends: Days on the market typically lengthen in November through February, which gives buyers better negotiating power.  

Market Extremes (Based on 2025 data) 

  • First-time buyers: Hit an all-time low, making up just 21% of the market due to limited inventory and affordability challenges. The median age of first-time buyers has risen to a record 40.
  • All-cash buyers: Reached a record high, averaging 26% over the last year. These buyers, often repeat buyers with significant home equity, have an advantage with rising interest rates.
  • Repeat buyers: Dominate the housing market, and are paying larger down payments and using cash for a higher percentage of their purchases.
  • Equity: The typical homeowner has gained an average of $140,900 in wealth over the last five years, widening the net worth gap between homeowners and renters. 

Other notable trends

  • Buyer behavior: Homes received fewer offers on average in October 2025 (2.1) compared to the previous month (2.3). Buyers are also planning to stay in their homes longer, with a median expected tenure of 15 years.
  • Agent usage: The majority of home buyers (88%) and sellers (91%) continue to use real estate agents.
  • FSBO sales: For-Sale-By-Owner (FSBO) sales hit an all-time low of 5%

Market Forecast (2026) 

  • Increased activity: NAR Chief Economist Lawrence Yun forecasts a potential 14% nationwide increase in existing-home sales in 2026, following a stagnant 2025.
  • Price stability: Despite rising sales, home prices are not expected to decline nationwide and are projected to climb 4% in 2026.
  • Job growth and affordability: Steady job growth and a modest decline in mortgage rates, expected to average around 6% in 2026, will help improve affordability. 

November 23, 2025
SAN DIEGO TRIBUNE reports. San Diego homes sales are near 40 year lows, but one segment of the market has seen a gold plated surge. Affluent buyers in San Diego County have snapped up luxury properties at a record price and at the quickest pace (significantly lesser days on market) in more than three years. There are people flush with cash ready to invest. In the meantime the rest of the market is very slow, there were 25,920 home sales in San Diego in 2024 and we expect 2025 will also show us record low sales.

As the report indicates above the trend in Southern California Counties seem to be the same the affluent well to do population is having a surge in popularity ready to buy Real Estate at lower prices.

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