Existing U.S. home sales saw a continued upward trend in November 2025, marking the third consecutive month of growth in what has been a turbulent year for the housing market. According to newly released data, sales of previously owned homes increased by 0.5% compared to October, reaching a seasonally adjusted annual rate of 4.13 million. While this figure remains slightly below the levels recorded in November 2024, it reflects a renewed sense of momentum after a prolonged slowdown in the first half of the year.
This modest but steady rebound is being interpreted by many housing analysts as a sign that the market is beginning to stabilize, following months of suppressed activity due to rising mortgage rates and inflationary pressures. Throughout much of 2025, buyers faced significant headwinds as interest rates peaked above 6.5%, and home prices remained elevated. However, a slight decline in rates during the fall appears to have unlocked some pent-up demand, encouraging more buyers to re-enter the market.
Another contributing factor to the November increase was the seasonal adjustment in market activity. As the real estate market transitions into the winter season, both buyers and sellers tend to recalibrate their expectations. In this case, sellers appeared more willing to list their properties, resulting in greater inventory and more choices for prospective buyers. Compared to the same time last year, total listings in November were up by approximately 7.5%, even though the month-to-month inventory declined by nearly 6%, a typical pattern for this time of year.
While the supply of homes still falls short of pre-pandemic norms, the current level—estimated at about 1.43 million units—is helping to moderate some of the price pressures seen over the past two years. The market now holds approximately a 4.2-month supply at the current sales pace, a metric still below the six-month threshold typically considered indicative of a balanced market but showing progress nonetheless.
The median sales price for existing homes in November rose to $409,200, a 1.2% increase from a year earlier. This marks the 29th consecutive month of annual price gains, underscoring the resilience of home values despite volatile economic conditions. While this continued appreciation is good news for homeowners and investors, it also reinforces the affordability challenges many first-time buyers continue to face. Wages have grown in the past year, but not always at a pace sufficient to keep up with home prices and borrowing costs.
Geographic differences in sales performance were evident, with the Northeast experiencing the largest monthly increase in activity. The South also saw moderate gains, while the Midwest recorded a decline and the West remained flat. These regional variations often reflect local economic conditions, including employment trends, population growth, and varying sensitivity to interest rate changes.
Notably, single-family homes accounted for the majority of the November transactions, continuing a trend that has dominated the market throughout the year. Condominiums and co-operative units, which generally appeal to buyers looking for lower-priced alternatives, saw lower transaction volumes and were subject to challenges such as rising maintenance fees and evolving buyer preferences.
Looking ahead, industry experts predict that existing home sales will continue to experience modest improvements into 2026, assuming that interest rates do not spike unexpectedly and that inflation continues to moderate. Forecasts from major housing analysts suggest that existing home sales could reach an annual pace of around 4.3 million next year, which would represent a modest but meaningful increase over 2025.
However, even with these gains, the market is expected to remain below its historical average in terms of total sales volume. Factors such as persistent affordability barriers, constrained housing supply, and general economic uncertainty continue to weigh heavily on both buyers and sellers. Many homeowners remain reluctant to list their properties due to the low mortgage rates they secured in prior years, further tightening the available inventory.
Economists and housing professionals caution that while the recent gains are encouraging, the road to a full housing market recovery will be gradual. Key indicators such as affordability, wage growth, interest rate stability, and broader economic health will continue to play a defining role in shaping the trajectory of the housing sector in the coming year.
Despite these challenges, the market’s current performance in the final quarter of 2025 provides a hopeful outlook. The combination of slightly improved mortgage conditions, rising but manageable home prices, and a larger pool of listings has helped create a more dynamic and navigable landscape for homebuyers. As 2026 approaches, stakeholders across the housing ecosystem—buyers, sellers, real estate professionals, and policymakers alike—will be watching closely to see if this momentum can be sustained or expanded upon in the months ahead.
