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US Home Prices Reach Record Highs as Sales Plummet
29 Jul
Summary
- Median home price in US hit record $435,300 in June 2025
- 24th straight month of annual price growth
- Home sales at lowest levels since early 2010s
The US housing market is in a state of turmoil in 2025, as home prices continue to soar to new record highs even as sales have fallen to their lowest sustained levels in over a decade.
In June 2025, the median price for an existing home in the US reached a staggering $435,300, according to the National Association of Realtors. This represents a 2% increase from the previous year and marks the 24th consecutive month of annual price growth.
Despite more homes being built, the housing market remains severely undersupplied, with construction lagging behind population growth. This imbalance between supply and demand has been the primary driver behind the relentless rise in home prices.
At the same time, mortgage rates above 6.5% have priced many buyers out of the market, leading to a significant decline in home sales over the past two years. Homeowners are also reluctant to sell, as over half of them have mortgage rates below 4%.
As a result, home sales in the US have fallen to their lowest sustained levels since the early 2010s. However, limited inventory and continued demand from more affluent buyers, many of whom can pay in cash, have kept prices climbing despite the drop in overall sales activity.
