Marketplace All-in-One A housing roundup and lookahead
Dec 30, 2025
The housing market in 2025 was sluggish, primarily due to high prices and locked-in mortgage rates. Economists predict a modest rise in sales next year, with hopes of improving affordability. A potential 'Great Housing Reset' might begin in 2026, aiming for market normalization. Meanwhile, a significant cyberattack on Jaguar Land Rover has disrupted the auto supply chain, exposing vulnerabilities and potentially costing over $2.5 billion. These issues highlight the interconnectedness of economic factors and market dynamics.
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Market Sluggish Due To Affordability
- The housing market was sluggish in 2025 due to high prices and affordability problems.
- Many sellers stayed put because they hold ultra-low pandemic-era mortgage rates, reducing inventory and deals.
Lower Rates Didn't Fix Affordability
- Mortgage rates fell from near 7% to the low-6% range but didn't restore affordability because prices stayed high.
- Economists expect rates to remain in the low-to-mid 6% range, slowing price growth relative to prior years.
Modest Sales Pickup Expected In 2026
- Forecasts predict a modest sales pickup in 2026, typically 1–3% though the NAR projects 14%.
- Some foresee a multi-year 'housing reset' with affordability improving and a more normal market returning.