Lower borrowing costs should breathe some much-needed life into the market next year, but stretched affordability and tight supply due to mortgage rate 'lock-in' will continue to hold back activity. Although we expect existing home sales to rebound, we forecast that they will only reach 4.8 million by 2026. Meanwhile, home listings have crept up this year and we expect that trend to continue. Steadily rising supply and affordability pressures will cap house price growth, which we expect to remain muted this year at 3%, before rising slightly to 4% in 2025 and 2026.
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