The U.S. housing market slump continued into its fourth year in 2025, with sales remaining at a 30-year low due to rising home prices and elevated mortgage rates. Sales of previously owned homes totaled 4.06 million, flat from 2024, with the median national home price rising 1.7% to $414,400.

Sales have been stagnant around a 4-million annual pace since 2023, well below the historical norm of 5.2 million. Despite the challenges, conditions began to improve in the fourth quarter of 2025, with lower mortgage rates and slower home price growth, according to the National Association of Realtors.

The recent pullback in mortgage rates led to a 5.1% increase in existing U.S. home sales in December, reaching a seasonally adjusted annual rate of 4.35 million units, the fastest pace in nearly three years. This exceeded economists’ expectations and pushed the median sales price to $405,400, an all-time high for December.

Affordability remains a major hurdle for many potential homebuyers, particularly first-time buyers without existing home equity. Economic uncertainty and job market concerns are also contributing to the hesitancy of buyers to enter the market, despite the improved conditions towards the end of 2025.

Read more at Yahoo Finance: 2025 US home sales stuck at 30-year low as mortgage rates, prices weighed on market