Between 2020 and 2022, U.S. home prices rose sharply due to low interest rates, limited housing supply, and intense buyer demand. By 2022, many markets saw double-digit annual increases, pushing affordability to historic lows.

However, beginning in 2023 and continuing through 2024–2025, the market gradually stabilized. Higher mortgage rates cooled buyer competition, while new construction and increased inventory helped balance supply and demand. As a result, price growth slowed significantly, with many regions experiencing flatter appreciation rather than the rapid spikes seen earlier.

By 2024–2025, housing prices in most areas settled into a more sustainable pace, creating a healthier and more predictable market for both buyers and sellers.