Existing-home sales saw the third consecutive month of modest increases as mortgage rates have been lower; however, inventory growth appears to be stalling as winter comes, according to the latest National Association of Realtors® (NAR) data.
NAR’s Existing-Home Sales Report for November found that sales increased 0.5% increase in existing-home sales month-over-month to a rate of 4.13 million, following a 1.2% increase last month to a rate of 4.10 million. Sales decreased 1% year-over-year, down from the 1.7% increase seen last month but better than the 4.1% fall seen in September.
NAR Chief Economist Lawrence Yun directly attributed the monthly sales increases in November, October and September to lower mortgage rates.
Inventory growth in November has begun to slow as the season turns to winter, a typical change for the housing market. Inventory for November sat at 1.43 million units, down 5.9% from last month, but still up 7.5% year-over-year. The supply of unsold inventory sits at 4.2-months, down from 4.4 months in October and up from 3.8 months in November 2024.
“With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months,” said Yun.
Single family homes saw a 0.8% increase in sales month-over-month to a rate of 3.75 million, down 0.8% from last year. Condos and co-ops saw a 2.6% decrease in sales month-over-month and year-over-year to a rate of 380,000.
Regionally, sales in the Northeast increased 4.1% month-over-month to a rate of 510,000, unchanged year-over-year. Midwest sales fell 2% decrease month-over-month to a rate of 970,000, down 3% year-over-year. The South saw a 1.1% increase in sales month-over-month to a rate of 1.89 million, unchanged year-over-year. The West saw no change monthly in sales at a rate of 760,000, but was down 1.3% year-over-year.
Dr. Selma Hepp, chief economist of Cotality, said that while home sales activity is transitioning into its usual seasonal low, what we should really pay attention to is the labor market and inflation, “both of which are indicating slower economic conditions and potentially giving a runway for another rate cut early in the next year.”
“Nevertheless, a rebound in the housing market hinges on a solid labor market, income growth and economic resilience amid the continued affordability crisis, elevated mortgage rates, and consumer discontent,” she continued.
Looking at home prices, the median home price grew 1.2% year-over-year to $409,200, the 29th consecutive month of year-over-year price increases. The single family median home price came in at $414,300, up 1.2% from last year. The condo and co-op median home price came in at $358,600up 0.1% from last year. Median home prices saw slight increases in the Northeast, Midwest and South, while the West saw a slight decrease,
“Wage growth is outpacing home price gains, which improves housing affordability. Still, future affordability could be hampered if housing supply fails to keep pace with demand,” Yun added.
Realtor.com®’s Chief Economist Danielle Hale noted, however, that “this was the slowest pace of home sales price growth since mid-2023, when prices declined from the prior year.”
Hale added that looking forward she expects that mortgage rates will remain near their current levels for most of 2026, which “will be sufficient to bring about a very modest improvement in affordability, whether we’re measuring monthly payments outright or monthly payments relative to incomes.”
“This should be enough to bump sales modestly higher in 2026, though they’ll remain historically low,” she continued.
