U.S. Housing Market Trends for August 2025

U.S. Housing Market Trends – August 2025 National Trends & Market Outlook

• Affordability & Demand: Home price growth has nearly flatlined. The S&P Case–Shiller 20-city index recorded a 0.3% decline in June, with year-over-year gains slowing to just 2.1%—well under inflation, signaling weakening housing demand.

• Widespread Cooling: National median home values are barely up—just 0.2% YoY, with Midwest and Northeast markets seeing modest upticks while the South and West face declines.Deep Freeze in Activity: The housing market remains subdued with very limited momentum expected—forecasted growth remains under 3% through 2025.

• Inventory Tick-Up: The supply of homes for sale has risen significantly. Some forecasts see 13% YoY inventory growth, though the total volume remains historically low.New Construction Discounts: Uniquely, new homes are now selling at a discount—about 6.5% cheaper than existing homes in mid-2025. Builders are driving deals with incentives amid oversupply (~9.2 months of inventory).

• Slow New-Home Sales: Builder activity is muted—June sales barely budged (~0.6% increase), but still trailed last year by 6.6%.

• Regional Split: Prices are rising in markets like Cleveland (+4.7%), Detroit (+3.8%), and Louisville (+3.9%), while cooling fast in places like Tampa (-6.2%), Austin (-6.0%), and Miami (-4.6%).

• Mortgage Burden: Many buyers face a $1,200/month increase versus pre-pandemic affordability levels. Sellers and builders are offering concessions, but demand stays weak.

• High Financing Costs: Mortgage rates remain elevated—hovering near 6.6–6.7% for 30-year fixed—and are expected to stay high through year-end.