Market Update: 2025 Housing Market Recap

As we wrap up 2025, the housing market tells a story of resilience, recalibration, and cautious optimism. After several years of uncertainty, the market showed signs of steadying, with existing home sales beginning to inch upward toward the end of the year. While overall sales activity remained below the highs of previous years, momentum improved as buyers adjusted to higher mortgage rates and sellers became more realistic with pricing. This shift helped bring a sense of balance back to the market, even if conditions still felt tight in many areas.

Home prices continued to rise in 2025, but at a much slower and healthier pace than the rapid appreciation seen earlier in the decade. This moderation helped relieve some affordability pressure, though elevated mortgage rates remained a challenge for many buyers. Inventory also improved slightly, giving buyers more choices and reducing some of the intense competition that defined past years. Still, supply remains limited in many markets, keeping prices relatively strong and favoring well-positioned sellers. For full stats, see the below graph:

Looking ahead, the key takeaway from 2025 is stability. Rather than dramatic swings, the market appears to be settling into a more sustainable rhythm. Buyers who stayed patient found opportunities, sellers who priced strategically saw success, and both sides benefited from informed decision making. As we move into 2026, staying educated on market trends and working with a knowledgeable real estate professional will continue to be essential for navigating what’s next.

This year we had more homes to choose from, lower rates (and a bit better affordability), and homeowners with near record amounts of equity. And that's just a few of the reasons why millions of people made a move this year. If you want to know what's expected for 2026, let’s connect!