Housing Market Update: A Tale of Two Markets

As we wrap up 2025, the U.S. housing market continues to be a mix of opposites—steady sales activity on one hand, and softening prices on the other.

Nineteen states are now back to 2019 inventory levels, while thirty-one are still running lean. Even in areas with tighter supply, price growth is cooling. The median price for new contracts is holding at $399,000, up about 2% from last year, but a key early indicator—asking price per square foot—is now slightly below 2024 levels. That hints at some price easing ahead. 

Inventory is starting its usual seasonal dip, down about 1.25% in late October. Still, there are 16% more homes on the market than this time last year, giving buyers a bit more breathing room. Sellers, however, are taking their time—new listings remain below pre-pandemic norms. 

Overall, sales activity looks healthy, running about 2–3% higher than last year, and just barely edging out 2024 year-to-date totals. 

What does this mean for you? 

If you’re thinking about buying, the combination of more inventory and slower price growth could work in your favor this winter. If you’re a homeowner, don’t be surprised by softer price headlines—it’s part of a natural market rebalancing after several wild years. 

In short: steady sales, gentle price dips, and a market that’s slowly finding its balance.