United States
Housing Market
The landscape of the US housing market evolves with shifting home prices and demand in local markets. The state and city real estate markets are polarized and run on regional dynamics. Houzeo's real estate market report tracks changes in supply and demand across the US. Our goal is to offer real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationUS Housing Market Overview
United States housing prices show a 4.1% YoY growth as of January 2025. The consistent increase in median home prices indicates the strength of the housing market. Currently, the median home price in the US is $418,489. The number of homes sold shows a slower increase of 2.5% YoY.
You can also check the market competitiveness through median days on the market. Homes now spend 56 days on the market before going under contract. Mortgage rates also affect the housing demand. Higher mortgage rates at around 7% squeeze buyer demand. All these metrics collectively indicate changes in the US housing market's pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Homes now spend 56 days on the market before going under contract. Mortgage rates also affect the housing demand. Higher mortgage rates at around 7% squeeze buyer demand. All these metrics collectively indicate changes in the US housing market's pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You get more competition due to fewer median days on the market. But the increase in the number of homes for sale by 11.7% gives you a lot of room to negotiate. However, a fall in mortgage rates can lead to a housing inventory decline, and vice versa.
- If You're a Seller: You can still make profits. With 22.4% of homes sold above the list price, it's possible to get favorable deals on your home sale.
US Housing Supply
The United States housing market will see a growth in housing supply as new construction expands. Experts predict moderate inventory gains in 2025. The number of homes for sale in the US increased by 11.7% year over year in January 2025. Currently, about 1.55 million homes are available for sale. The housing market is balanced with 4 months of supply. Months of supply lower than 6 indicate a seller's market, while more point towards a buyer's market.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You have an advantage with the increased number of homes for sale. The rising inventory will potentially meet the demand and stabilize house prices in the US. While 4 months of supply signals faster sales, the rising inventory can benefit you.
- If You're a Seller: You need to act fast and sell your home before the housing supply picks up pace. You can take advantage of the growing demand in states like Texas, Georgia, and Florida, which have the largest net inflow of people. To attract buyers, you can stage and market your house on the MLS.
US Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline in prices suggests less demand and more supply. Tracking this trend helps you gauge market competitiveness.
22.4% of homes in the USA sold above the list price in January 2025. Price drops increased slightly from last year, with 19.1% of homes selling below list price. The 98.2% sale-to-list price shows price flexibility for both buyers and sellers.
What Does It Mean for Home Buyers and Sellers?
22.4% of homes in the USA sold above the list price in January 2025. Price drops increased slightly from last year, with 19.1% of homes selling below list price. The 98.2% sale-to-list price shows price flexibility for both buyers and sellers.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: The current rate of 19.1% of homes with price drops suggests potential bidding wars and increased affordability for you. The current housing market serves both sellers and buyers. However, there is some market stagnation due to the supply shortage and high mortgage rates. Skyrocketing interest rates could suppress demand in the months to come.
- If You're a Seller: You can earn profits on home sales, given that 22.4% of homes are selling above the list price. You could also wait till spring or summer when housing demand booms.
Is It a Buyer's or Seller's Market?
Strong
Buyer
Buyer
Balanced
Seller
Strong
Seller
Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Is It a Buyer's or Seller's Market?
As of January 2025, home buyers in the US have more leverage due to increased housing inventory and price drops. However, mortgage rates of 7% can restrict buying power. With an increase in new constructions and a 6.8% rise in new home listings, the American dream of homeownership is still very much in reach.
On the other hand, the median days on the market-currently at 56 days-can appeal to sellers looking to list their homes. If average US home prices keep rising, you can have an upper hand in the market. You can list your home for a flat fee and make a speedy sale. But remember, these trends vary significantly within the diverse US real estate market.
US Housing Market Insights
The US housing market shows steady growth despite increasing interest rates. Many new buyers may refrain from investing due to the hike in mortgage rates. Affordability will only improve when the housing supply is increased and mortgage rates are stable. Home prices have risen 4.1% nationwide, reaching a median value of $418,489. The market has expanded, with 1.55 million homes for sale --- up by 11.7% YoY. Current inventory trends favor buyers, with 463,716 newly listed properties. National mortgage rates hold at 7%, up 0.3 points.
Regional markets reveal diverse price growth patterns across the country. Baton Rouge, LA, leads with a 28.9% price increase. Michigan's Warren and Milwaukee follow with 26.8% and 26.5% growth respectively. Homes spent 56 days on the market nationwide, up by 7 days YoY. The market maintains a balance with 4 months of supply. 22.4% of homes are selling above the list price, while 19.1% are seeing price drops. If you plan to buy, make sure to consider property taxes, insurance costs, and HOA fees.
Regional markets reveal diverse price growth patterns across the country. Baton Rouge, LA, leads with a 28.9% price increase. Michigan's Warren and Milwaukee follow with 26.8% and 26.5% growth respectively. Homes spent 56 days on the market nationwide, up by 7 days YoY. The market maintains a balance with 4 months of supply. 22.4% of homes are selling above the list price, while 19.1% are seeing price drops. If you plan to buy, make sure to consider property taxes, insurance costs, and HOA fees.
Nationwide Migration Trends
The US housing market reveals interesting patterns in the homebuyer movement between November 2024 and January 2025. 27% of buyers searched for homes outside their current metros. Buyers mostly gravitated towards homes in Florida. North Carolina and Arizona also attracted a significant number of new residents. These states offer lower taxes and more new construction. High-risk areas show unexpected migration trends: fire-risk counties gained 63,000 residents. Flood-risk counties attracted 16,000 new residents, mainly in Florida. This reaffirms the appeal for areas with zero to low tax rates.
Cost of living and climate change concerns also drive migration. Texas low tax rates and robust job market attract residents, even with a relatively high cost index of 93. On the other hand, California's high 134.5 index and wildfire risks push residents out. More buyers are beginning to weigh climate risks and affordability when it comes to their moves.
Cost of living and climate change concerns also drive migration. Texas low tax rates and robust job market attract residents, even with a relatively high cost index of 93. On the other hand, California's high 134.5 index and wildfire risks push residents out. More buyers are beginning to weigh climate risks and affordability when it comes to their moves.
Frequently Asked Questions
How have home prices changed in the US over the past years?
US median home prices have continued to rise over the past years, driven by high demand and low inventory. Real estate is an appreciating asset and only sees occasional declines. The median house prices in the US have increased at an annual rate of 4.1%, with some regions seeing double-digit percentage growth. You can check your home's fair market value with a free home value estimator to see where you stand.
Which is the cheapest place to live in the USA?
The cheapest places to live in America are Detroit, MI, and Rockford, IL. The cost of living in both cities is at least 20% lower than the national average. Detroit's median home price is only $89,800 as of January 2025. The cheapest state to live in the USA is Mississippi, based on its median home price, housing costs, grocery costs, average utilities, etc. Read on to find out more about the cheapest places to live in the US.
When will housing prices drop in the US?
US home prices aren't dropping on a large scale. In fact, nationwide prices rose 4.1% YoY in December 2024. The average home prices by states show varied trends; the Florida real estate market shows a constant growth of 1.4% in prices, whereas house prices in California grew at 6.3% YoY. Experts forecast slow yet stable growth in home prices. However, the increased number of houses for sale in America may bring down prices to a moderate level in overvalued areas.
What are the United States housing market predictions in 2025 and beyond?
The real estate housing market in the US is expected to be unpredictable in 2025. The nation will experience both a sharp increase in housing inventory as well as the homelessness crisis. However, the rise of affordable housing options may serve the growing demand. Though this change should be enough to stabilize the market, steep mortgage rates can also squeeze demand.
Is now a good time to sell or buy a house in America?
First check the current housing price trends and available housing inventory in your neighborhood. The average home price in America is currently at $418k and is rising at an annual rate of 4.1%. Sellers can benefit from rising prices and high demand. If the supply is less than the demand, you can price your home in a higher bracket. On the other hand, if mortgage rates are stable with 6 or more months of supply, it's the best time to buy a house in the US.
What's the average cost of a home in the US?
The average price to buy a house in the US depends on location, size, and market conditions. It typically ranges from $80,000 to $650,000 for single-family homes. If you want a custom house for yourself, the cost to build a house ranges between $200k and $600k, excluding land.
Should I wait for some time before buying houses in the US?
As a buyer, it's possible to get a fair deal now, with stabilizing prices and growing inventory. The average home price in the US is $418,489. If you're buying a house, first get a mortgage pre-approval. You will also need to budget for a down payment of up to 10%.
How can I list my home for sale in the US?
You can list your home for sale with a Flat Fee MLS listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in the US?
The average mortgage rate for buyers in the US fluctuates between 6% to 7.25%. Make sure to check your credit score and current rates before you apply for a mortgage.
When will the housing market crash in the US?
As per housing market forecasts, it's very unlikely that the market will crash. Home prices remain 80% above pre-Covid levels, with sustained growth projected through 2025.
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