The 2025 Housing Market Overview
The U.S. housing market navigated a challenging landscape throughout 2025. Mortgage rates remained elevated compared with recent years, and home prices continued to rise nationwide. Demand for affordable housing far outpaced supply, and with fewer buyers able to keep up with rising costs, sales of previously owned homes were subdued. Younger buyers faced steep hurdles as high rents, inflation, and student loan debt limited their ability to save for a down payment. By mid-2025, first-time buyers accounted for just 21% of all home purchases, while the typical age of a first-time buyer reached a record high of 40, according to the National Association of REALTORS® (NAR). This aging trend extended across the broader market, as the median age of all homebuyers reached 59. NAR data show that homeowners also set a record, staying in their homes a median of 11 years before selling.
Sales
- Pending sales increased 9.4 percent, finishing 2025 at 5,045.
- Sold listings were up 9.6 percent to end the year at 5,020.
Listings
- Comparing 2025 to the prior year, the number of homes available for sale was down by 37.4 percent.
- There were 393 active listings at the end of 2025.
- New listings increased by 0.2 percent to finish the year at 6,610.
Prices
- Home prices were up compared to last year.
- The overall median sales price rose 1.5 percent to $1,390,000 for the year.
- Single Family home prices gained 4.6 percent compared to last year, and Condo/ TIC/Coop home prices increased 1.3 percent.
List Price Received
- Sellers received, on average, 107.0 percent of their list price at sale, a year-over-year improvement of 1.1 percent.
- Single-family homes received 113.3% of their list price, and Condo/TIC/Coop homes received 101.5%.
2026 Housing Market Outlook
Looking ahead to 2026, experts are forecasting an improvement in market activity. Mortgage rates declined through the second half of 2025 and are expected to stay in the 6% range in the year ahead, supporting incremental gains in affordability. As inventory builds, sales volume is projected to increase. Economists anticipate modest price gains, well below the rapid appreciation of recent years. While conditions should become somewhat more favorable for buyers, affordability constraints and the effects of a decade-long supply shortfall will continue to shape the market. Taken together, these trends suggest 2026 will be a year of stabilization and recovery, rather than dramatic change.
