Housing market had its worst slump in decades in 2025

US existing‑home sales fell to about 4.06 million in 2025, a roughly 30‑year low, while median prices rose and mortgage rates eased toward the end of the year.

US existing‑home sales fell again in 2025, extending a downturn that began in 2022. The National Association of Realtors reported about 4.06 million sales for the year. Median national prices rose while mortgage rates eased late in the year. Policymakers have proposed measures intended to address affordability. Key facts: - The National Association of Realtors reported roughly 4.06 million existing‑home sales in 2025, near a 30‑year low and continuing a multi‑year slump. - The median national home price for 2025 rose 1.7 percent to $414,400, and December recorded a median of $405,400, an all‑time high for that month. - Mortgage rates eased late in the year, ending around 6.15 percent, and December existing‑home sales rose to an annual pace of about 4.35 million. - Inventory remained below pre‑pandemic norms, with about 1.18 million unsold homes at the end of December, and the administration has floated measures such as longer loans and bond purchases that some economists say would have limited impact. Summary: The housing market slump continued into its fourth straight year, keeping annual sales near multi‑decade lows while prices remained elevated. Mortgage rates fell late in the year and December sales improved, but inventory stayed constrained. Analysts’ forecasts for 2026 vary; the National Association of Realtors’ chief economist projects a notable sales increase, while other forecasts are more modest.