New data from Realtor.com shows the U.S. housing market is cooling, with homes staying on the market longer and prices softening in many areas. In November 2025, the typical home spent 64 days for sale, three days longer than a year earlier and nine days longer than in 2022. Price trends vary by location, but nationally there are clear signs of easing: annual price declines were recorded in 28 of the 50 largest metro areas, while six others saw flat prices. The U.S. Census Bureau reports the median home price fell from $423,100 at the start of 2025 to $410,800 in the second quarter. Inventory is also improving, with active listings up 12.6% year over year and 18% of homes seeing price cuts in November, increasing buyer leverage. However, overall inventory remains below pre-pandemic levels, as many homeowners are reluctant to sell while holding low mortgage rates, and some sellers are withdrawing listings due to affordability constraints. Forecasts point to a continued slowdown rather than a sharp drop, with Fannie Mae projecting home price growth to ease from 2.5% now to 1.3% by the end of 2026.
Looking ahead, industry forecasts suggest 2026 could bring modestly lower interest rates and slower price growth, improving affordability in some regions, though price declines typically depend on supply exceeding demand. For financially prepared buyers at the right life stage, purchasing now can still make sense, given moderating prices and rates that, while elevated, are not historically extreme.
