Summary
Home sales in the United States stayed at a 30-year low in 2025 due to high home prices and high mortgage rates. Sales of existing homes have been declining since 2022, with rates beginning to ease in late 2025. The Trump administration proposed measures to increase affordability, though experts think these may have limited effects.
Key Facts
- In 2025, home sales in the U.S. totaled 4.06 million, the lowest since 1995.
- The median home price in 2025 increased by 1.7% to $414,400.
- Mortgage rates were around 7% at the start of the year but ended at 6.15%.
- The U.S. housing market has been declining since 2022 due to high mortgage rates.
- Proposals from the Trump administration include a 50-year mortgage and mortgage rate reductions.
- By late 2025, monthly sales increased, with December home sales reaching an annual rate of 4.35 million.
- Inventory of unsold homes rose by 3.5% to 1.18 million by the end of December.
- A balanced market between buyers and sellers typically requires a 5- to 6-month supply of homes; current supply is about 3.3 months.
