The U.S. housing market cooled after rapid price surges during the pandemic, with home prices rising only 1.1% year-over-year as of January 2026. Sales volume remains below pre-pandemic levels, down 8.3% year-over-year. Northeast states lead in market activity due to limited supply and strong demand, while many Southern and Mountain West markets have cooled. Affordability and high mortgage rates continue to challenge buyers nationwide.