United States Housing Market: What to Expect in 2025?

Name: United States Housing Market - Price Trend Analysis
Creator: Houzeo
License: https://www.houzeo.com/terms-of-use/

Home Sales

Overview

Forecast

Supply

Demand

U.S Existing Home Sales

The US existing-home sales show the aggregate transaction volume of single-family homes, condos, and townhouses. Home sales fell by -3.89% in April 2025 compared to the previous year. The median home prices rose to $438,466 at 1.4% year over year. The mixed trends in home sales and prices indicates the strength of the housing market. Inventory has also increased to 17.9 million homes, representing 3.1 months of supply at the current sales pace. The home sales report is a key indicator of overall economic strength.

U.S. Existing Home Sales

1,344,459

17.91% year-over-year

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The US Housing Market Overview

Planning to sell property in the US? You're positioned favorably. Though the median sale price reaches $438,466 (up 1.4% year-over-year), the meaningful indicator is market velocity. Properties move within 40 days on market, inventory totals just 3.1 months of supply, and homes are selling for 99.2% of listing prices. Last month saw 437,779 US houses sold, representing a 3.9% decrease from the previous year. These circumstances create optimal conditions for sellers to maximize returns and receive multiple strong offers.

Median Sale Price

# of Homes Sold

Median Days on Market

30-Year Fixed Mortgage Rate

Median Sale Price

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# of Homes Sold

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Median Days on Market

0 year-over-year

30-Year Fixed Mortgage Rate

0.63 year-over-year

What does this mean?

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The US Housing Market Forecast for 2026

The US housing market is positioned for gradual stabilization in 2026, with modest growth expected as mortgage rates ease and inventory conditions improve while maintaining seller-favorable dynamics.

Price Outlook:

Home prices across the US forecast to rise 2-4% in 2026
Affordability is improving as wage growth outpaces home price appreciation
Strong homeowner equity supports price stability and strategic listing decisions

Will the US Housing Market Crash in 2026?

Expert consensus strongly indicates no. The US remains supported by fundamental market strengths, including sustained buyer demand, strong homeowner equity levels, and stricter lending standards than pre-2008. With 3.1 months of supply and homes selling at 99.2% of the asking price, the market demonstrates healthy demand fundamentals. While some localized price corrections may occur in markets with rapid inventory growth, sellers can anticipate continued competitive conditions and price stability through 2026.

UnlikelyCrash MeterLikely

Current Market Indicators

Days on Market:
40 days
Months of Supply:
3.1 months
Sale-to-List Ratio:
99.2%
Mortgage Rates:
Currently- 6.23% projected to hover between 6.0% and 6.8%

The US Housing Supply

The US inventory favors sellers through constrained availability. With 1,344,459 homes currently available last month, the noteworthy element is supply limitations. Inventory grown 17.9% year-over-year, months of supply sits at merely 3.1 (up marginally from 3.2 previously), and 664,044 new properties came to market this month (a 5.1% up). This restricted inventory strengthens sellers' negotiating positions and creates urgency among buyers. For sellers ready to capitalize on favorable conditions, now represents an excellent opportunity to list your home on MLS in America and achieve maximum value.

# of Homes for Sale

# of Newly Listed Homes

Months of Supply

# of Homes for Sale

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# of Newly Listed Homes

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The US Housing Demand

The US purchasing activity demonstrates strong seller authority. With the sale-to-list price ratio at 99.2% last month, the defining characteristic is premium pricing capability. An impressive 30.2% of properties sold over asking price (down from 27.8% previously), the sale-to-list ratio held steady 0.4% year-over-year, and the US homes with price reductions climbed from 18.2% to 20.5%. These figures confirm sellers control market conditions and regularly receive offers exceeding their listing prices.

Homes Sold Above List Price

Homes with Price Drops

Sale-to-List Ratio

Homes Sold Above List Price

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Frequently Asked Questions

How have home prices changed in the US over the past year?

the US's median home price is currently $438,466, with a 1.4% year-over-year increase. You can check your home's fair market value with our free home value estimator to compare prices in your neighborhood and know where you stand.

Are home prices dropping in the US?

Currently, home prices are stable with localized variations across different states. Experts forecast growth in the US home prices through 2025-26, although increased inventory may moderate prices in overvalued areas.

What's the average price for a house in the US?

The average cost of a home in the US typically ranges from $361,577 for condos to $456,745 for single-family homes, depending on location, size, and market conditions.

What are the US housing market predictions in 2025 and beyond?

The housing market in the US is expected to stabilize in 2025, alongside rising mortgage rates. Our housing market predictions suggest that the supply of US houses should increase enough to stabilize price growth.

What is a good time to buy a home in the US?

Typically, from August to December is the best time to buy when supply is high and demand is low. You must check the current market trends in home prices and inventory in the US. If mortgage rates are stable, the median market time is more than 70 days, with more than 5 months of supply, it's the best time to buy a house in the US.

What are the steps to buying houses in the US?

As a buyer, you should keep an eye on price changes and inventory levels. If you're buying a house in the US, you should get a mortgage pre-approval and budget for a down payment of at least 10%.

How can I list my home for sale in the US?

You can list your home for sale with a Flat Fee MLS listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀

What is the average mortgage rate for buyers in the US?

The average mortgage rate for buyers in the US real estate market fluctuates between 6% to 8%. Always check your credit score and current mortgage rates with lenders before you apply.

When will the housing market crash in the US?

The US housing market crash is not likely in 2025 and 2026. Home prices are not dropping suddenly and remain 80% above pre-COVID levels, with sustained growth projected through 2025-26. You should keep an eye on the US housing market predictions before you invest.

Important Legal Disclosures

*Based on Houzeo calculations of home data from MLS and/or public records.

“The market analysis provided on this page is for informational purposes only and does not constitute financial, investment, or legal advice. Data is sourced from public records, industry reports, and third-party providers, and while Houzeo strives for accuracy, we make no guarantees regarding the completeness, accuracy, or timeliness of the information presented.

All estimates, projections, and historical data are based on statistical models and should not be relied upon as predictions of future market conditions. Past performance is not indicative of future results, and real estate market conditions may change due to various economic and regulatory factors.
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