Summary
Home prices in the U.S. are still rising, though at a slower pace than before. In 2025, challenges such as high prices and borrowing costs have made homeownership difficult, resulting in fewer sales. Some regions with more homes for sale are seeing prices drop, especially where new homes were built during the pandemic.
Key Facts
- U.S. median home sale price in early December 2025 was $389,123, a 2% increase from the previous year.
- Median asking price for homes was $382,535, up 2.6% from a year earlier.
- Home prices rose 60% nationwide since 2019, creating affordability issues.
- Homeownership rates dropped to 65% in the second quarter of 2025, the lowest since 2019.
- In 2025, home sales fell during traditionally busy months, spring and summer.
- Improved inventory in 2025 gave buyers more options and negotiable prices.
- States like Florida and Texas, with many new homes, saw year-over-year price drops.
