Since the pandemic, US home values have surged over 40%, and despite slowing growth, limited housing supply continues to keep prices elevated.
In expensive states like California and Hawaii, buyers now need nearly twice the average income to afford a home.
After dropping to 2.65% in 2021, 30-year fixed rates have stabilized in the 6% range throughout 2025, reducing affordability.
Active listings rose 20% year over year, inflation is easing, and lower rates plus more price reductions may create openings for buyers.
While short-term buyers or those with tight budgets may want to wait, long-term homeowners seeking stability and equity could find value in the current market.
