America's housing market now worth $55 trillion — after growing 57% in just 5 years. How to still find a deal

Core Insights - The U.S. housing market has reached a record value of $55.1 trillion in June 2025, marking a $20 trillion (57%) increase since 2020 [1] - The growth rate has slowed to 1.6% over the past year compared to the rapid increases seen from 2020 to 2022 [2] Regional Performance - The Northeast, particularly states like New York, New Jersey, Pennsylvania, and Illinois, has experienced significant growth, with New York alone contributing $216 billion to the total U.S. growth [3] - In contrast, states like Florida, Texas, and California have seen a cooling in their housing markets, attributed to rising home insurance costs and property taxes, exacerbated by climate change-related natural disasters [4] Mortgage Rates and Housing Inventory - Mortgage rates have increased from a low of 2.65% in January 2021 to a peak of 7.79% in October 2023, with the average rate for a 30-year mortgage at 6.26% as of September 18, 2024 [5] - In New York, housing demand has outstripped supply, with inventory at half of pre-pandemic levels, while new construction in the Sun Belt states has created "pockets of affordability" for first-time buyers [6] Home Prices - As of July 31, the median sale price for a home in the U.S. was $373,333, and the average home value was $363,505 as of August 31 [7]