Housing market trends reflect a complex landscape shaped by elevated mortgage rates, persistent inventory shortages, and shifting buyer priorities. According to the National Association of Realtors, existing home sales declined 4.9% in 2024 compared to 2023, while median home prices rose 3.8% nationally, reaching $407,100 by year-end. These diverging patterns signal a market where demand remains strong but affordability challenges limit transaction volumes.

Real estate websites like Zillow, Redfin, and Realtor.com report that active inventory improved modestly in late 2024, rising 12% compared to 2023 levels. However, supply remains 35% below pre-pandemic norms. Understanding current housing market trends helps buyers time purchases strategically, enables sellers to price competitively, and guides investors toward profitable opportunities in evolving regional markets.

Table of Contents

1. Current Housing Market Trends 
2. Realtor Insights: What Buyers and Sellers Are Doing Now
3. Real Estate Websites Data Snapshot
4. House Prices vs Housing Prices: National Patterns
5. Home Values and Appreciation Rates
6. Transactional Trends: Houses For Sale Activity
7. Regional Housing Market News Highlights
8. FAQ
9. Conclusion

Current Housing Market Trends 

Housing market trends early demonstrate continued resilience despite affordability headwinds. Mortgage rates stabilized near 6.8% after peaking above 7.8% in October 2023, according to Freddie Mac. This stabilization encouraged cautious buyer re-entry, particularly among first-time purchasers who had delayed decisions during the high-rate period.

The housing market features stable mortgage rates around 6.8%, modest inventory growth, and persistent home price appreciation averaging 3% to 5% nationally. Buyer demand remains concentrated in affordable metros, while luxury markets show signs of cooling.

Mortgage Rate Impact on Market Activity

Mortgage rates directly influence purchasing power and transaction volumes. A buyer with a $500,000 budget at 6.8% interest can afford approximately $326,000 in home value after a 20% down payment. At 7.8%, that same buyer qualifies for only $305,000, a $21,000 reduction. This sensitivity explains why even modest rate changes significantly impact market activity.

Freddie Mac data shows that rates dropping from 7.8% to 6.8% between October 2023 and January  increased buyer purchasing power by roughly 7%. This improvement drove a 9% increase in pending home sales during the fourth quarter of 2024 compared to the same period in 2023, signaling renewed buyer confidence.

Inventory Dynamics and Supply Constraints

Housing inventory remains the market’s most persistent challenge. According to Realtor, active listings reached 890,000 units nationally in December 2024, up from 795,000 in December 2023. While this 12% gain represents progress, inventory remains far below the 1.4 million units typical in balanced pre-pandemic markets.

Expert Tip: Sellers hesitant to list due to low existing mortgage rates create a “lock-in effect.” Homeowners with 3% to 4% mortgages avoid selling because purchasing a new home at 6.8% dramatically increases monthly housing costs, even if the new home is comparable in price.

This lock-in effect suppresses turnover and limits inventory growth. The National Association of Realtors estimates that the lock-in effect removed approximately 1.3 million potential listings from the market between 2022 and 2024, exacerbating supply shortages and supporting price appreciation.

Realtor Insights: What Buyers and Sellers Are Doing Now

Realtors across the country report shifting strategies among both buyers and sellers adapting to current market conditions. Annette Seaborn, a top-performing realtor in Los Gatos and Monte Sereno backed by Coldwell Banker, observes that buyers are prioritizing homes requiring minimal updates to avoid renovation costs in a high-rate environment.

Buyers focus on move-in-ready homes and aggressive negotiation on inspection items. Sellers invest in pre-listing improvements and strategic pricing to attract offers quickly. Both parties rely more heavily on realtor expertise to navigate competitive dynamics.

Buyer Behavior Shifts 

First-time buyers represent 32% of transactions early , up from 28% in 2023, according to NAR. These buyers typically stretch budgets to secure homeownership before prices rise further, often accepting higher interest rates with plans to refinance when rates decline.

Checklist for Buyers in  Market:

• Get pre-approved for financing before viewing homes to demonstrate seriousness
• Focus on move-in-ready properties to avoid renovation financing challenges
• Request seller concessions for closing costs to preserve cash reserves
• Consider adjustable-rate mortgages if planning to sell within five to seven years
• Work with realtors who have strong local market knowledge and negotiation skills
• Monitor interest rate trends and be ready to lock rates when favorable
• Expand search radius to include emerging neighborhoods with better value

Buyers increasingly rely on realtor guidance to identify undervalued properties and navigate multiple-offer situations. Successful buyers in competitive markets like Los Gatos and Monte Sereno often waive minor contingencies while retaining inspection and financing protections, balancing competitiveness with prudent risk management.

Seller Strategies and Market Positioning

Sellers face a nuanced market where overpricing risks extended days on market while underpricing leaves money on the table. According to Redfin, homes priced within 3% of comparable sales receive offers within 18 days on average, while homes priced 5% or more above comps sit for 42 days or longer.

Mini-Case: In Los Gatos, a seller listed a four-bedroom home at $4.2 million in January after reviewing comparable sales with realtor Annette Seaborn. The property featured recent kitchen and bath updates and excellent school proximity. By pricing competitively and staging professionally, the seller received three offers within 12 days, ultimately closing at $4.35 million after strategic negotiation.

This example demonstrates how proper pricing, market timing, and professional representation combine to achieve optimal outcomes. Sellers who invest in pre-listing repairs, professional photography, and targeted marketing consistently outperform those who list without preparation.