2025 home sales hit fresh low as the American Dream stays elusive

Core Insights - The housing market in 2025 experienced a significant downturn, with home sales reaching a new low of 4.06 million previously-owned homes sold, marking the lowest level since 1995 [1] - Economic uncertainty, particularly following President Trump's tariff announcement in mid-April, led to a surge in mortgage rates and a stagnation in home sales [2] - Despite a challenging year, December 2025 saw a 5.1% increase in sales, attributed to declining mortgage rates and a cooling of price gains, with the median price for previously-owned homes at $405,400, a slight increase of 0.4% from the previous year [5] Market Activity - The 2025 housing market was characterized by prolonged selling times, with homes spending about 63 days on the market, indicating a trend of longer selling periods compared to previous years [4] - De-listings increased by 50% compared to 2024, suggesting a disconnect between sellers' pricing expectations and buyers' willingness to pay [4] Future Outlook - Forecasts indicate a potential 5% increase in existing-home sales for the coming year, driven by expected declines in mortgage rates and slower home price gains [6] - A report from Realtor.com highlighted that there are now more outstanding mortgages with rates above 6% than below 3%, indicating a "rate lock-in" effect that is preventing many homeowners from listing their properties [7]