U.S. home prices projected to reach $410,700 by 2025

Home prices in the U.S. are projected to rise by 2% in both 2025 and 2026, reaching a median of $410,700. This increase is slower compared to previous years, with the current median at $406,100. The National Association of Realtors expects mortgage rates to stabilize around 6% in 2025, which may encourage more buyers to enter the market. They forecast 4.5 million existing-home sales in 2025, up from 4.15 million in November. Inventory levels are improving due to new construction and homeowners listing their properties. The association anticipates housing starts will reach 1.45 million units in the next couple of years, approaching the historical average.