"The year 2025 is widely considered by real estate experts to be a year of normalization for the U.S. housing market, moving away from the extremes of the pandemic era. This shift is characterized by a more balanced market with increased inventory and a slower pace of price growth, though it is not expected to be a dramatic price correction or a buyer's market nationally."
"Slowing Price Growth: Home price appreciation decelerated to a more sustainable, pre-pandemic pace, rather than falling, which is a key sign of normalization. Affordability Challenges Remain: Despite the market balancing, high prices and elevated mortgage rates mean that affordability remains a significant challenge for many would-be buyers, with nearly 4 in 10 listings seeing price reductions to attract buyers."
"Gradual Recovery: The market is in a "Great Housing Reset," which is expected to be a multi-year period of gradual increases in home sales and slow price normalization, with a more balanced market expected by 2026. Local Variation: National trends mask significant local variations. Some high-demand areas may still experience strong price growth, while others with higher inventory might see prices stabilize or slightly decline."
Inventory increased substantially in 2025, reducing the extreme supply shortages seen during the pandemic and contributing to a more balanced market. Home price appreciation slowed to a pre-pandemic, sustainable pace rather than collapsing, signaling normalization without a national buyer's market. Affordability remains strained because high prices combined with elevated mortgage rates keep many buyers sidelined, and nearly 40% of listings have experienced price cuts to attract buyers. The market is entering a multi-year "Great Housing Reset" with gradual sales growth and slow price adjustments expected through 2026. Significant local variation will persist, with some areas still experiencing strong demand.
Read at Boston Condos For Sale Ford Realty
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