By the third quarter of 2025, the tide seemingly began to turn in regard to a housing market that had been marked by limited inventory since the onset of the COVID-19 pandemic in 2020. According to market indicators from Redfin, the National Association of REALTORS and Homes for Heroes, by the summer of 2025 things began to shift in regard to inventory (9.4 percent increase yearover- year). Prices also began to level off, as the median existing home price in the United States was $435,300 in June 2025, which marked a 2 percent increase from the previ ous year. Price reductions also bec ame more common com pared to 2024, signalling a cooldown in some segments.
Although affordability concerns still persist, many people may finally be ready to enter the home-buying arena. When doing so, it’s essential prospective home buyers recognize how much they can comfortably spend on a home. Most experts suggest buyers combine lender affordability guidelines with an assessment of one’s personal budget. These factors can help individuals determine a reliable budget when shopping for homes.
