The 2025 real estate market is defined by a "New Normal." After years of volatility, we are seeing a shift towards stabilization. Mortgage rates are moderating, inventory is slowly recovering, and buyers are regaining some leverage.

National Market Overview

As of Q1 2025, the national median home price sits at $417,000, a modest 3.2% increase year-over-year. The frenzied bidding wars of the past are largely gone, replaced by a more balanced negotiation process.

  • Inventory: Active listings are up 15% compared to last year.
  • Days on Market: Homes are sitting on the market for an average of 35 days.
  • Sales Volume: Existing home sales have stabilized at an annualized rate of 4.2 million units.

Mortgage Rate Forecast

Interest rates remain the biggest driver of affordability. The 30-year fixed rate has settled into the 6.5% - 7.0% range.

Regional Price Comparison

Region Median Price YoY Change Status
Northeast $450,000 +4.5% Seller's Market
Midwest $310,000 +5.2% Affordable / Hot
South $375,000 +3.8% Balanced
West $615,000 -1.2% Correction

AI-Powered Predictions for Late 2025

Our analysis suggests:

  • The "Lock-In" Effect Will Ease: More sellers will list homes due to life events.
  • Rent Growth Will Slow: New multi-family supply will normalize rents to 2-3% growth.
  • Suburbs Will Shine: Hybrid work sustains demand for space.

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