Happy 2025! Sellers, I’ve got some good news for you. Today, we’re diving into what’s happening with mortgage rates, how we’re closing the year with active listings, and what it all means for the housing market this year.
U.S. Home Prices Show Growth
According to Redfin, U.S. home prices increased by 0.5% month-over-month in November, marking the third consecutive month of growth. Year-over-year, home prices rose 5.7%, a substantial increase compared to the typical 2–3% annual growth seen in a balanced market.
While 5.7% is still high, it represents the smallest annual increase since October 2012, suggesting that the market is finally beginning to cool. Of the 50 most populous metros, 14 saw a slight decline in prices, but the majority continued to experience growth.
Positive Trends Despite Mortgage Rate Challenges
The housing market has shown resilience despite higher mortgage rates, with purchase applications up 6% year-over-year and existing home sales increasing by 4.8% in November—the largest year-over-year gain since June 2021, per the National Association of Realtors.