A MESSAGE FROM LIBERTAS GROUP
Harris Real Estate Daily
By Tim & Julie Harris · December 13, 2025
⛅ Good morning, {{first_name| agents}}! If you want to sound confident and credible with clients right now, this week’s numbers help.
The market isn’t booming or busting — it’s balancing.
Here’s what the latest reports say about sales, prices, rates, and where 2026 may be headed.
Click the video below to listen as Tim and Julie break this down in the full show 👇
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1️⃣ 🏠 The Market Is Moving Toward Balance — Not Boom or Bust
And how experts see 2026 shaping up
According to the National Association of Realtors (NAR) October 2025 report:
Existing-home sales: 4.10 million (annualized)
Median U.S. home price: $415,200 (+2.1% year-over-year)
Inventory: 4.4 months of supply
2026 Sales Predictions (Existing Homes):
NAR: projects a ~14% increase in existing-home sales next year — a meaningful rebound after stagnant volume in 2025. (National Association of REALTORS®)
Realtor.com: forecasts a modest ~1.7% increase to about 4.13 million homes sold in 2026. (Realtor)
Bright MLS estimates: another outlook suggests 4.51 million existing-home sales in 2026 — roughly +9% year-over-year (regional forecast). (HousingWire)
(These variations reflect different data inputs, sources, and seasonal timing, but all call for an improvement from 2025 levels.)
📈 Unexpected Purchase Application Trend:
HousingWire analysts have noted that mortgage purchase applications — an early leading indicator of sales — are trending higher than last year at this time, despite typical seasonal declines this late in the year. This suggests demand is activating sooner than many expected. (HousingWire)
Why this matters:
A stronger start in applications then feeds through into pending sales and closings over the next 60–90 days, providing real momentum for early-season 2026 transactions.
📌 Translation:
While forecasts vary, most agree existing-home sales will rise in 2026 — some moderately and others more strongly — provided affordability and supply pressures don’t worsen. Higher purchase applications late in the year give these predictions a healthier foundation.
Source: National Association of Realtors (NAR), Realtor.com, Bright MLS, HousingWire
2️⃣ ⚖️ Days on Market Confirm It’s a Balanced Market
Typical benchmarks used by economists and brokerages:
Seller’s market: ~20 days or fewer
Balanced market: ~30–60 days
Buyer’s market: 60+ days
Where we are now:
Median days on market (U.S.): 51 days
📌 Translation:
Homes aren’t flying off the shelf — but they are selling. Pricing, condition, and presentation matter again.
Source: Redfin, October 2025
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3️⃣ 📈 Home Prices in Dollars: Long-Term Wealth Is Still Working
Using national price data derived from the S&P CoreLogic Case-Shiller U.S. National Home Price Index, translated into real-world dollars:
🇺🇸 Since 2019:
Typical U.S. home value (2019): ~$260,000
Typical U.S. home value today: ~$420,000
Dollar appreciation: ≈ $160,000
Percentage gain: ~60%
🕰️ Over ~30 years:
Typical mid-1990s home value: ~$130,000
Today: ~$420,000
Dollar appreciation: ≈ $290,000
Average annual appreciation: ~4–5% per year (nominal)
📌 Translation:
Short-term headlines come and go — long-term home price appreciation continues to build wealth.
Source: S&P CoreLogic Case-Shiller Index via Federal Reserve (FRED)
4️⃣ 💸 The Fed Cut Rates This Week — What Happens to Mortgage Rates?
What happened:
This week, the Federal Reserve cut its benchmark rate by 0.25%, signaling confidence inflation is cooling.
Important distinction:
Mortgage rates are not directly set by the Fed. They instead follow long-term bond yields, inflation expectations, and market dynamics.
Economist expectations:
Current 30-year fixed: ~6.6%–6.7%
2026 forecasts: ~6.0%–6.3% average
Possible short dips: High-5% range if inflation continues easing
📌 Translation:
Rates don’t drop instantly after a Fed cut, but the overall trend is easing — which should incrementally improve affordability for buyers in 2026.
Sources: Federal Reserve, Reuters economist surveys, Realtor.com Forecast
5️⃣ 🏚️ Foreclosures Are Up — But Still Historically Low
Yes, foreclosure filings were up 21% year-over-year in November.
But perspective matters.
% of mortgages in foreclosure:
Today: ~0.50%
One year ago: ~0.45%
2008 housing crash: ~3.3%
2009 peak: ~4.6%
📌 Translation:
Today’s foreclosure rate is 6–9× LOWER than during the housing crisis.
This is normalization, not distress.
Sources: Mortgage Bankers Association (MBA); ATTOM; Reuters
🗣️ What to Say to Clients & Prospects
For buyers:
“We’re seeing early signs that demand is waking up sooner than usual — mortgage purchase applications are above where they were last year at this time. That could mean a stronger spring selling season ahead.” (HousingWire)
For sellers:
“Multiple national forecasts expect sales growth in 2026. NAR is calling for up to a 14% rise, while other economists see more modest gains. Either way, the upside in activity means sellers with well-priced homes should be competitive.”
For fence-sitters:
“This isn’t a crash market or a frenzy market — it’s a balanced market with early momentum. Understanding 2026 projections and current data gives you an edge.”
💡 For Rate-Worried Clients
“Most buyers think the only option is a 30-year fixed — but that’s not true. Adjustable-rate mortgages are offering lower starting rates, and many buyers refinance or move before the rate ever adjusts.”
A real product quote this week:
5/6 ARM average rate: ~5.75%
30-year fixed average rate: ~6.6%–6.7%
📌 A 5/6 ARM means:
The rate is fixed for 5 years
Then adjusts every 6 months thereafter
Many homeowners refinance or move before rate changes matter
Source: Bankrate national averages, lender surveys (Dec 2025)
💰 ARM vs. 30-Year Fixed: Monthly Payment Comparison
Loan Amount | 30-Year Fixed @ 6.65% | 5/6 ARM @ 5.75% | Monthly Difference |
|---|---|---|---|
$400,000 | ~$2,570 | ~$2,335 | ≈ $235/month |
$600,000 | ~$3,855 | ~$3,505 | ≈ $350/month |
$800,000 | ~$5,140 | ~$4,675 | ≈ $465/month |
📌 Translation:
That’s $2,800–$5,500+ in annual payment savings, simply by choosing an ARM with a lower initial rate.
🧠 Bottom Line
This week’s most watched real estate developments tell a cohesive story:
✔️ The market is settling into balance
✔️ Sales are poised to grow in 2026 — maybe sharply, maybe incrementally
✔️ Rates are trending lower
✔️ Price gains continue long-term
✔️ Headlines are dramatic — but data is measured
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📧 Gmail Just Quietly Turned On an Alarming New AI Setting — Here’s How to Turn It Off
On October 10th, 2025, Google flipped a switch inside Gmail that 99% of users still don’t know exists.
And yes—it affects you, your business, your clients, and anyone who sends you an email.
Google’s new update automatically allows Gemini AI to:
Scan every email you receive
Read attachments
Analyze financial documents
Review private messages
Build data and advertising profiles from your inbox
All without you ever opting in.
This was enabled by default.
The good news:
You can shut it off in less than 60 seconds.
Below is the step-by-step guide every real estate professional should follow immediately.
EXCLUSIVE MASTERMIND
🚨 Most Agents Won’t Survive 2026…
The 2026 real estate market will be a beast. 😱
Most agents will struggle — but the winners already know what works.
Tim & Julie Harris share the exact playbook:
✅ Proven lead generation
✅ Repeatable systems
✅ Branding that makes sellers pick YOU
⚡ No fluff. No BS. Just real coaching built for 2026.
👉 Save your seat now https://HarrisMastermind.com
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