U.S. Housing Market in 2025
What’s Really Happening — and Why There’s Still Hope
A Market Full of Value
The U.S. housing market is the largest “savings account” in the world. As of June 2025, it’s worth more than $55 trillion. Since 2020, Americans have gained $20 trillion in housing wealth, showing how powerful real estate still is for building long-term security.
Some Areas Are Winning, Others Are Slowing
Not every place in the country is moving at the same speed. Smaller markets and areas in the Northeast and Midwest are seeing the biggest growth. States like New York, New Jersey, Illinois, Ohio, and Michigan have added billions in home value.
On the other hand, big states like California, Texas, and Florida have lost some housing wealth over the past year. But it’s important to remember that since 2020, those states still hold some of the largest overall gains in the country.
Why Buyers Have More Choices Now
For years, there weren’t enough homes for sale. That’s finally changing. In 2025, the summer housing market showed the most supply in nearly a decade. More homes for sale means buyers don’t have to compete as fiercely, and that can help bring balance back to the market.
The Power of New Construction
Newly built homes are making a difference. Since 2020, they’ve added $2.5 trillion in value across the country. States like Utah, Texas, Idaho, and Florida have especially benefited from new building. This gives buyers more options and helps neighborhoods grow stronger.
Prices and Opportunities
It’s true that prices have cooled in some “pandemic boomtowns” like Raleigh, Nashville, and Phoenix. But this also means buyers finally have room to negotiate. In June 2025, nearly 27% of homes listed cut their asking prices — the highest rate for June since 2018.
That’s not a sign of weakness; it’s a sign of opportunity. For families who have been waiting, this creates openings to buy a home that might have been out of reach just a year or two ago.
Investors and Everyday Buyers
Investors are active, buying about 3 in 10 homes this year. But here’s the hopeful part: if mortgage rates improve, regular buyers will be back in force. Experts expect home prices to grow again in 2026, so people who step in now could benefit from that growth.
Where Buyers Have the Advantage
Some places are already buyer’s markets — where buyers hold more power than sellers. These include:
Florida: Miami, Orlando, Jacksonville, Tampa
New York City
Riverside, California
If you’re in one of these areas, conditions may be the best they’ve been in years.
The Hopeful Outlook
Yes, affordability is still tough, and some markets are slowing. But the overall picture is encouraging:
Housing remains the most important way Americans build wealth.
More homes are available, giving buyers choices.
Price cuts create opportunities for those who’ve been waiting.
Long-term, real estate continues to grow in value.
For anyone who feels discouraged, this moment may actually be the chance to step in before the next wave of competition and price growth arrives.
What This Means for YoU
The market is shifting — and that’s where strategy matters most. Whether you’re a first-time buyer, an investor, or someone considering selling, the key is planning ahead so you’re ready to take advantage of these changes.
Buyers: Increased supply and price cuts create real opportunities. With the right guidance, you can find a home that fits your budget and long-term goals.
Sellers: Even with price adjustments, strong demand means the right marketing and positioning can still deliver excellent results.
Investors: This is a window of time to secure properties before mortgage rates drop and competition heats back up.
Let’s Plan Your Path to Ownership
Every move in real estate should be part of a bigger plan. With strategic planning, you can go from “just looking” to achieving your ultimate goal of homeownership and wealth-building through real estate.
📩 Contact Clara Duran Reed today (310) 519-7670 to talk about your options, review the latest market data, and create a personalized strategy for success.