The US housing market is facing serious headwinds in 2025, with home sales declining to levels not seen in three decades. The combination of elevated mortgage rates and stubbornly high property prices continues to squeeze both buyers and sellers out of the market.

This slowdown reflects broader economic pressures that typically ripple through risk asset classes, including crypto markets. When traditional real estate investments become less attractive due to affordability challenges, capital allocation patterns shift across different asset classes.

The persistent gap between mortgage rates and home valuations is creating a challenging environment for housing demand. Real estate sentiment often precedes movements in alternative investments, making this trend worth monitoring for anyone tracking macro economic cycles and asset correlations.