The U.S. housing market is divided. In the South and West, homes are abundant for sale, prices are dropping, and sellers are offering incentives to attract buyers. In the Northeast and Midwest, there aren’t enough homes, prices keep going up, and buyers compete for what little is available. Mortgage rates are much higher than before, around 6 to 7 percent, so most homeowners don’t want to sell and lose their low rates. This keeps supply tight in many places. Even though sales are expected to grow in 2025, houses are more expensive than ever for the average family, so buyers and investors have to be smart, move quickly in competitive areas, and look for bargains where inventory is piling up.

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