On December 19, 2025, the National Association of REALTORS® (NAR) released its latest data on existing-home sales in the United States, revealing a modest 0.5% increase in sales during November compared to October. This marks the third consecutive monthly gain, with the seasonally adjusted annual rate reaching 4.13 million units—its highest level in nine months. Although this is an encouraging development for the housing market, the increase comes with important caveats. Sales still remain below the levels seen a year ago, highlighting that the U.S. housing market has yet to fully recover from the challenges of high prices, economic uncertainty, and affordability issues that continue to strain both buyers and sellers.
The slight uptick in existing-home sales can be attributed in part to a dip in mortgage rates toward the end of the year. As borrowing costs eased slightly, more buyers—particularly those who had been hesitant in the face of high mortgage rates earlier in 2025—were able to enter the market. While this has helped spur increased interest from prospective buyers, many are still facing significant barriers to homeownership, especially given the high price of homes and the ongoing economic concerns that have created uncertainty in the broader market. In fact, despite the modest increase in sales, the number of transactions still falls short of pre-pandemic levels, underlining how far the housing market still has to go in terms of recovery.
A key issue that continues to affect the market is the inventory shortage. The number of unsold homes has tightened slightly, as more homes are either being taken off the market or are simply not being put up for sale at the same pace as before. This shortage of homes for sale has contributed to ongoing price increases, which have been particularly challenging for first-time homebuyers. With fewer homes available, those that are on the market tend to be priced higher, and competition for these properties can drive prices up even further. The median price of an existing home has continued its year-over-year increase, reaching a higher figure than the previous year and reflecting a market where demand still exceeds supply.
The regional picture across the United States varies considerably, with different areas of the country experiencing different dynamics in the housing market. The Northeast and South regions saw growth in existing-home sales, with higher demand fueling an increase in transactions in these areas. This growth can be attributed to a combination of factors, including relatively more affordable home prices in certain parts of the South and increased migration to these regions, particularly from more expensive housing markets in the Northeast and West. In contrast, the Midwest saw a decline in existing-home sales, which could reflect local economic conditions, such as slower job growth or higher levels of inventory. Meanwhile, the West region experienced a stabilization in sales, suggesting that this area may be seeing some leveling off after months of fluctuating activity, with home prices and demand in cities like Los Angeles, San Francisco, and Seattle remaining high but showing signs of moderation.
While the increase in home sales is positive, the broader challenges within the housing market are far from resolved. Prices remain high, and with inventory still relatively tight, many would-be buyers are finding it difficult to secure homes that fit within their budgets. First-time buyers, in particular, are facing significant hurdles as high borrowing costs and limited availability of affordable homes prevent many from entering the market. These affordability issues are compounded by economic uncertainties, including concerns about inflation, wage stagnation, and the broader macroeconomic environment, which continues to weigh on consumer confidence. For many buyers, these economic factors make purchasing a home seem more difficult, and this is reflected in the overall sales numbers, which remain below pre-pandemic levels.
The current state of the housing market presents a mixed outlook as we look ahead. While lower mortgage rates have provided some relief to buyers and helped stimulate a slight increase in sales, the overall market conditions remain challenging. Many buyers continue to be sidelined by the high cost of homes and the limited inventory available, while sellers are also hesitant to list their properties due to the uncertain economic environment. The market is likely to remain constrained until these affordability issues are addressed and the supply of homes increases. For first-time homebuyers, in particular, the outlook remains uncertain, as the market will continue to be difficult to navigate without more affordable options.
In conclusion, the modest gain in existing-home sales during November 2025 marks a small but positive development in a housing market that continues to face substantial hurdles. While lower mortgage rates have provided some relief to buyers, high prices and limited inventory continue to constrain the market, particularly for first-time buyers. As the year ends and 2026 begins, the housing market’s recovery will likely depend on broader economic conditions, including the direction of mortgage rates, inflation, and overall consumer confidence. Until then, affordability challenges and tight inventory are expected to remain central concerns for both buyers and sellers.
