The U.S. housing market experienced a period of caution and uncertainty following the partial government shutdown that ended on February 3, coinciding with a powerful winter storm that disrupted buying and selling activity and made market recovery more difficult.
Thirty-year fixed mortgage rates stood at around 6.09% as of February 12, with interest rates remaining unchanged. Although there was no significant drop in rates, their stability provided buyers with greater clarity as they evaluated purchasing decisions.
The homeownership rate rose slightly to 65.7% in the final quarter of 2025, supported by a larger share of young households entering the market. Meanwhile, some sellers remain hesitant, contributing to a gradual shift in market dynamics in favor of buyers amid falling prices and weaker competition.
Housing inventory
The number of homes listed for sale increased by 7.5% year over year, offering buyers a wider range of options. However, inventory growth slowed as new listings declined by 8.5%, suggesting that many sellers prefer to wait for more stable conditions before putting their homes on the market.
Across major cities, 46 of the 50 largest markets recorded annual growth in inventory, with the biggest increases seen in Seattle, Charlotte, and Washington, D.C., while a few other cities posted slight declines.
A slowdown in sales pace
Homes remained on the market about eight days longer than a year ago, exceeding the typical seasonal pattern and reflecting reduced urgency among buyers.
The median sale price also fell for the second consecutive week, down 2.4% year over year, indicating that sellers are adjusting their expectations and adapting to a more price-sensitive market. Overall, the market is gradually moving toward a buyer-leaning balance as pressures from slower sales and relatively higher supply continue.
