2025 home sales stuck at 30-year low with prices high and mortgages onerous

Core Insights - The U.S. housing market continues to experience a slump, with sales remaining at a 30-year low as of 2025, primarily due to rising home prices and elevated mortgage rates [1][3] - Home sales of previously occupied homes totaled 4.06 million in 2025, unchanged from 2024, marking a decline every year since 2022 [1][2] - The median national home price increased by 1.7% to $414,400 in 2025, with sales stuck around a 4-million annual pace, significantly below the historical norm of 5.2 million [2] Sales Performance - December 2025 saw existing U.S. home sales rise to a seasonally adjusted annual rate of 4.35 million units, a 5.1% increase from November, marking the fastest sales pace in nearly three years [4] - This December also recorded a median sales price of $405,400, a 0.4% increase from December 2024, representing an all-time high for any previous December [5] Market Conditions - The average rate on a 30-year mortgage was around 7% a year ago but eased to close to 6% by the end of 2025, contributing to improved sales conditions in the fourth quarter [3] - Despite lower mortgage rates, affordability remains a significant challenge for many potential homebuyers, particularly first-time buyers, due to economic uncertainty and job market concerns [6]