While the National Association of Realtors might be better known for its attorneys than any other professional group in its midst, it also has a chief economist, though he has stayed out of the headlines for the most part.

Lawrence Yun has been the NAR chief economist since the mid-2000s and recently made some positive forecasts.

Speaking at a Realtor conference in Boston, he noted that 2024 was a difficult year on many fronts and that “we did not get the home sales recovery this year after an awful 2023,” but also shared that the household equity in real estate nationally is at a record high and that the wealth of property owners has reached $35 trillion.

Yun (rhymes with “moon”) related that the median net worth of homeowners was $415,000 while the net worth of those who rent their homes is $10,000 in 2024. He stated that U.S. job gains since the beginning of the COVID-19 pandemic have “led to a record-high payroll employment as of Sept. 2024.”

Of note is that most of the audience agreed with his accurate assessment of the national market, yet in the Middle Tennessee area, things were not as dismal. Home prices were higher on average, and the upper end in Davidson County had its best year in the history of the city.

As for interest rates, Yun said “per my forecast, it’s more likely that we’ll go back to 6%. That will be the new normal bouncing around 5.5-6.5%.”

Yun feels there will be six to eight interest rate reductions by the Federal Reserve, and he advised Federal Reserve chair Jerome Powell to “do it in January, rather than December.”

His explanation of the current economy is that with interest rates high, there is less money available for borrowing due to the fact that the government is borrowing so much money. He predicts that if “the Trump administration can lay out a predictable plan to reduce the budget deficit, then mortgage rates can move downward.”

Due to the high prices and interest rate, the homeownership rate among younger Americans is lower than in times past. My take, according to the information Yun delivered, is the gap in net worth between renters and homeowners is not to be ignored. Anyone that can buy anything should do so as the rates are not falling any time soon.

Sales of the Week

Maggie Schuh (rhymes with “shoe”) is a top producing Realtor with Tyler York Real Estate Brokers. Last week, a couple of other real estate All-Pro selections, Shelly Bearden and Rob Bearden, connected with Schuh to sell one of the Beardens’ listings at 1011 Grassland Lane for $6.8 million.

While the original list price was $7 million, the transaction initially stalled as the buyers held the line back at a lower million number. Negotiations eventually landed at the $6.8 million mark for the 8,169 square foot home with five bedrooms, four full bathrooms, and two half bathrooms which between them have no bathtub or shower, so these two halves do not equal a whole.

Schuh skillfully coached her buyers’ takeover as the new home team, and the former residents now take to the road for their next challenge.

The lot measures 1.34 acres, which translates to 58,370 square feet. To put that into perspective, an entire football field including both end zones is 57,600 square feet.

As this closing went smoothly, it was clear that the transaction was officiated better than the Titans game Sunday as the flags flew each time the Titans took a breath.

The firm Tyler York has exploded into the upper end real estate since its inception in 2018, and oddly, there are neither Tylers nor Yorks involved in the company. Founder Charlie Peterson hails from the town of Tyler, Texas, a relatively small town of around 100,000 people and famous for its roses. Peterson wanted to incorporate the small community into the name while invoking the most urban city in the land that being New York. Hence Tyler York.

While Tyler is closer to Dallas than Houston, and New York houses two pro football teams (at least in name), the firm is celebrating the days of wine and roses now and faring much better than the Cowboys, Giants and Jets (a combined 8-22).

Richard Courtney is a licensed real estate broker with Fridrich & Clark Realty, LLC and can be reached at [email protected].