The U.S. housing market is showing clear signs of rebalancing as of mid-November 2025, with national home-price growth moderating and inventory levels rising to their highest point in over six years. This shift follows several years of rapid appreciation and tight supply, marking a notable change in momentum for both buyers and sellers across the country. Industry analysis indicates that after a long stretch of pandemic-era volatility and aggressive pricing, the market is entering a more stable—if still challenging—phase.
According to a recent report by real estate analytics firm Cotality, national year-over-year price growth fell to just 1.2 percent as of September 2025. This represents a significant deceleration compared to the double-digit increases recorded from 2020 through early 2023. The slowdown is accompanied by a measurable increase in active listings. Inventory levels are now the highest they have been since 2019, providing prospective homebuyers with more choices and contributing to a gradual easing of the intense competition that has defined the market in recent years.
However, the national averages mask significant regional variation. In the Northeast, fundamentals remain strong. States such as Connecticut and New Jersey continue to see above-average home-price growth, supported by stable employment, constrained housing stock, and sustained buyer demand. These markets have shown resilience even as broader national trends begin to cool. On the other hand, many metro areas across the South and West are beginning to experience price softening, with more than 20 percent of markets reporting year-over-year price declines as of early fall.
For home sellers, this evolving dynamic presents both challenges and opportunities. The days of fast, above-asking-price offers are becoming less common, especially in markets where supply is beginning to catch up with demand. Sellers may now need to invest more time in pricing strategy, staging, and marketing to attract interest. Homes are staying on the market longer, and buyers are becoming more selective, often negotiating contingencies or seeking price reductions. Sellers in cooling markets are being advised to temper expectations and work closely with agents to position their listings competitively.
Buyers, by contrast, may find some welcome relief in this shifting environment. With more inventory to choose from and slower price appreciation, they have greater leverage in negotiations than in recent years. However, affordability remains a persistent concern. Mortgage rates are still elevated compared to historic lows seen earlier in the decade, and while home prices are no longer skyrocketing, they remain out of reach for many households. This affordability crunch is compounded by factors such as rising property taxes, insurance premiums, and utility costs in certain markets.
Market analysts suggest that the U.S. housing market is moving toward a more segmented, regionally driven structure. Instead of the broad-based, nationwide trends that characterized much of the past five years, local economic conditions are becoming more influential in shaping housing performance. Areas with strong job growth, infrastructure investment, and limited new construction are likely to remain competitive, while regions with weaker demand or oversupply may continue to see stagnation or mild declines.
Looking ahead to spring 2026, both buyers and sellers are evaluating whether to act now or wait for potentially better timing. For some homeowners considering listing their properties, the current market offers a still-active environment with relatively low competition from new builds. Others may choose to delay until spring, traditionally the busiest season in real estate, in hopes of stronger demand. For buyers, particularly those with financial flexibility and pre-approval in hand, the winter months may present an opportunity to negotiate favorable terms before broader demand returns in the spring.
In summary, the November 2025 housing snapshot suggests that while the U.S. real estate market remains active, it is undergoing a significant shift toward greater equilibrium. Moderating price growth, expanding inventory, and growing regional divergence are replacing the breakneck pace of the past few years. For consumers and professionals alike, the current environment calls for careful strategy, realistic expectations, and close attention to local market signals.
