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 late 2024, despite high mortgage rates. Demand is strong in key markets, particularly in the Northeast and California, where limited housing supply keeps prices elevated. Home sales have also improved, with a 10.8% increase in December 2024 compared to the previous year. In contrast, many Southern and Mountain West markets have cooled off significantly.