US Housing Market: What’s Happening Right Now?

If you’re thinking about buying, selling, or just curious about where home prices are headed, you’ve landed in the right spot. The US housing market moves fast, but the basics stay the same: supply, demand, and the cost of borrowing. Below we break down the biggest drivers, the latest numbers, and what you can do today to stay ahead.

Key Trends in 2024‑2025

First off, home prices have cooled off a bit after a crazy rise during the pandemic. Nationally, the median price is sitting around $400,000, which is roughly 3% lower than the peak in 2022. That sounds good for buyers, but the drop isn’t uniform. Coastal metros like San Francisco and New York are still seeing modest gains, while many inland cities have seen sharper declines.

Inventory – the number of homes on the market – is finally catching up. After years of scarcity, there are now about 1.3 million homes listed, a 12% increase over last year. More choices mean sellers need to price realistically and buyers can negotiate more.

Mortgage rates are the wild card. After a long stretch above 7%, rates have slipped to about 6.2% for a 30‑year fixed loan. Lower rates boost buying power, but any bounce back up can quickly cool demand again. Keep an eye on the Federal Reserve’s moves; they set the tone.

Practical Tips for Buyers and Sellers

Buyers: Get pre‑approved before you start house hunting. A pre‑approval shows sellers you’re serious and gives you a clear budget. Look beyond price – factor in property taxes, insurance, and possible repairs. If you find a home you love but the price feels high, don’t be shy about asking for concessions, like closing‑cost help.

Sellers: With more homes on the market, staging matters more than ever. A clean, uncluttered space lets buyers picture themselves living there. Price your home based on recent sales in your neighborhood, not just your wish list. Consider offering a small incentive, like a credit for a new appliance, to stand out.

Both sides should stay flexible on timing. The best deals often pop up when the market is in a short lull – typically in late fall or early spring. If you can wait a few weeks, you might lock in a better rate or snag a better price.

Finally, don’t ignore local nuances. A city’s job growth, school ratings, and future development plans can push prices up faster than national trends suggest. Use tools like city‑level price indexes or talk to a local agent who knows the micro‑market.

In short, the US housing market is steadier than it was a few years ago, but it’s still sensitive to rates and regional economics. By keeping an eye on inventory, mortgage rates, and local factors, you can make smarter decisions whether you’re buying or selling.