U.S. Housing Market Normalizes with 4% Rise in Sales and Softening Prices

November Sees a 4% Increase in Weekly Pending Home Sales

The U.S. housing market is exhibiting signs of normalization as weekly pending home sales for November 2025 have increased by approximately 4% compared to the same period last year. Around 59,000 single-family homes have gone under contract this week alone, demonstrating a resurgence in buyer activity. This uptick in sales is occurring alongside a median contract price of $391,000. The easing of prices is contributing to improved affordability, offering a glimmer of hope to potential homebuyers who have been sidelined by rapid price escalation in recent years. According to Accardo Real Estate Associates, the median four-week average for new contracts is slightly higher at $397,000, indicating some stabilization in the market.

Declining Prices Enhance Affordability: Median Drops 1% Below 2024 Levels

The median asking prices per square foot have slipped 1% below 2024 levels, signaling a move towards a more balanced market. Dr. Selma Hepp, Chief Economist at Cotality, notes that despite a modest 1.2% increase in home prices since September 2025, there are significant regional variations. For instance, 20% of the 411 U.S. metropolitan areas saw annual price declines during the same period. This trend towards greater affordability, despite ongoing challenges, may ease the path to homeownership for many Americans. According to Cotality, although 75% of the top 100 housing markets are still considered overvalued, the recent softening of prices offers a reprieve.

U.S. Inventory Increases by 6.7% with Mortgage Rates at 6.3%

Another notable development is the rise in housing inventory, with a 6.7% increase in homes for sale compared to last year, totaling over 2,058,269 homes as of October 2025. This increase provides more options for buyers and is part of a broader trend towards a balanced market. Meanwhile, the national average 30-year fixed mortgage rate stands at 6.3%, down 0.17 points from the previous year. This decrease in mortgage rates may further support the increase in sales activity by lowering borrowing costs, as reported by Redfin. This context is essential for investors who are eyeing opportunities to enter or expand their presence in the U.S. market.

Regional Disparities Highlighted as 53% of U.S. Homes Lose Value

According to Zillow Group, 53% of U.S. homes have lost value over the past year, marking the most significant decline since 2012. This trend highlights stark regional disparities, where some areas are experiencing more pronounced declines in home values. Such variations necessitate careful consideration by investors and real estate professionals aiming to capitalize on market conditions. The data underscores the critical need for strategic regional analysis to maximize returns and mitigate risks in an evolving market landscape.

"53% of U.S. homes have lost value over the past year"

Expert Analysis: A Balanced Market with Cautious Optimism

Maya Tarek, Senior Analyst at RealEstateAbroad.com, suggests that the current trends indicate a shift towards a more balanced market. "While affordability is gradually improving, the market remains complex, with regional disparities requiring careful analysis," she notes. The combination of increasing inventory, softening prices, and stable mortgage rates contributes to cautious optimism among stakeholders. Investors are advised to remain vigilant and stay informed about local market conditions to make informed decisions. This approach ensures they can navigate the complexities of the current housing landscape effectively.

Future Projections: Continued Stabilization and Moderated Appreciation

Looking ahead, the U.S. housing market is expected to continue its path towards stabilization. Analysts project that the market will experience moderated appreciation rates, helping to ease affordability pressures and enable more sustainable growth. The ongoing adjustments in price trends offer a more favorable environment for first-time homebuyers and investors seeking value. As the market evolves, staying abreast of economic indicators and regional trends will be essential for stakeholders aiming to leverage opportunities in the real estate sector. According to Compass Economist Insights, the evolving dynamics present an opportune moment for strategic investments.