Home / Business and Economy / US Home Sales Hit 30-Year Low Amid High Prices
US Home Sales Hit 30-Year Low Amid High Prices
15 Jan
Summary
- US home sales in 2025 fell to a 30-year low, totaling 4.06 million.
- Record high prices and elevated mortgage rates deterred buyers for four years.
- December 2025 saw a surge in sales due to falling mortgage rates.
In 2025, the United States witnessed a significant slump in home sales, reaching a 30-year low with approximately 4.06 million transactions. This downturn marked the fourth consecutive year of declining housing market activity, largely attributed to persistently high home prices and elevated mortgage rates that deterred potential buyers.
The prolonged housing market slump, which began in 2022 with sharply rising mortgage rates, has been exacerbated by a shortage of homes. This scarcity is a result of over a decade of below-average new construction, pushing affordability to critical levels.
However, recent trends offer a glimmer of hope. December 2025 experienced a notable surge in existing home sales, a 5.1 percent increase from November, reaching a 4.35 million annual pace. This uptick was driven by falling mortgage rates, which concluded the year at 6.15 percent, the lowest in nearly 15 months.
