The U.S. housing market is entering 2025 with renewed momentum after a subdued 2023. Home prices have risen 6.3% year-over-year by the end of 2024, driven by improving wage growth and increased inventory, despite ongoing affordability challenges. Home sales have also rebounded, showing a 10.8% increase in December 2024 compared to the previous year. The Northeast and California are experiencing the hottest markets, while Southern and Mountain West regions have cooled off significantly.