US Housing Market Shows Signs of Stabilization After Two-Year Slump
The US housing market is showing signs of stabilization as mortgage rates decline and inventory improves. Home sales have increased for three consecutive months, offering hope to buyers who have been priced out of the market.
Housing market shows recovery signs
Market Recovery
Existing home sales rose 8% in November, the third consecutive monthly increase. The improvement follows mortgage rate declines from 7.5% peaks to under 6%, improving affordability for buyers.
Inventory has risen 15% year-over-year as some homeowners, previously locked in by low-rate mortgages, begin listing properties.
Price Dynamics
National home prices remain 5% above year-ago levels but are no longer accelerating. Some previously hot markets, including Austin and Phoenix, have seen price declines.
First-time buyers are returning to the market, though affordability remains stretched by historical standards.
2026 Outlook
Economists expect further improvement in 2026 if rates continue declining. Most forecasts project modest price appreciation of 2-4% nationally, with significant regional variation.
The US housing market shows signs of recovery with rising home sales and improving inventory, though affordability remains a challenge for buyers.
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