The National Association of Realtors®’ (NAR) latest report, released today, revealed a significant rebound in existing-home sales for December 2025, marking the strongest seasonally adjusted performance in nearly three years.
The month saw existing-home sales increase 5.1% from the prior month, signaling improved market conditions after a challenging year marked by record-high home prices and historically low sales activity.
The surge reflects broad-based gains across all four major U.S. regions. Month-over-month sales increased in the West, Midwest, South and Northeast, though year-over-year comparisons varied by region. The South posted year-over-year gains; the Midwest and West remained flat, and the Northeast declined compared to December 2024.
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month.
“Inventory levels remain tight,” Yun added. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February.”
December saw 4.35 million existing-homes sold at a median sales price of $405,400. The month’s inventory stood at approximately 3.3 months of supply. There was a 1.4% increase in sales from December 2024.
“Despite the notable December improvement, this preliminary data show that 2025 existing-home sales fell just short of the 2024 annual total,” noted Realtor.com®’s Chief Economist Danielle Hale. “In 2025, 4.061M homes were sold compared to a 2024 total of 4.062M. This means that 2025 is now the lowest annual total since 1995, but by a very small margin: a difference of 1,000 home sales.”
Single-family home sales rose 5.1% in December to a seasonally adjusted annual rate of 3.95 million, up 1.8% from the previous year.
Sales for condos and co-ops were up 5.3% month-over-month to a seasonally adjusted annual rate of 400,000, down 2.4% from last year. The median price of $364,400 was up 1.5% from December 2024.
On a regional basis, the South has outperformed other areas, with a 6.9% increase in sales month-over-month to an annual rate of 2.02 million, up 3.6% year-over-year. Its median price of $360,200 was down 0.3% from last year.
The West followed with a 6.6% increase in sales, month-over-month, for an annual rate of 810,000, unchanged year-over-year. The median price of $605,600 was down 1.4% from the previous year.
The Northeast had a monthly increase of 2%, to an annual rate of 520,000, down 1.9% from the previous year. Its median price of $496,700 was up 3.7% from December 2024. The Midwest also had a 2% monthly increase, to an annual increase of 1 million, unchanged from the previous year. Its median price of $306,000 was up 3.1% from December 2024.
To read the full report, click here.
