U.S. Housing Market Slump Continues

The U.S. housing market experienced its fourth consecutive year of slump in 2025, with sales of previously occupied homes remaining at a 30-year low of 4.06 million units, as reported by the National Association of Realtors. Despite a slight increase in the median national home price to $414,400, elevated mortgage rates and high prices continued to deter prospective buyers. Lawrence Pak, chief economist for the National Association of Realtors, noted that conditions began improving in the fourth quarter with easing mortgage rates, which fell from around 7% to nearly 6% by year-end, according to United States — Freddie Mac. This led to a December sales increase, the fastest pace in nearly three years. However, affordability remains a major challenge, particularly for first-time buyers, with inventory still well below pre-pandemic levels. Proposals from the Donald Trump administration to address affordability are expected to have minimal impact.