December 19, 2025 – Washington D.C. – U.S. existing home sales increased modestly in November amid slightly lower mortgage rates, but economic uncertainty continues to keep potential buyers cautious.

According to the National Association of Realtors (NAR), existing home sales rose 0.5% to a seasonally adjusted annual rate of 4.13 million units, slightly below economists’ expectations of 4.15 million. On a year-over-year basis, home sales declined 1.0%, reflecting ongoing challenges in the housing market.

Regional Trends

• Northeast: Sales surged 4.1%, though the region accounts for a smaller share of the market.
• South: Sales increased 1.1%.
• Midwest: Sales fell 2.0%, reflecting affordability concerns.
• West: Sales remained flat.

The inventory of existing homes dropped 5.9% to 1.43 million units, marking the lowest level since March 2025. At November’s sales pace, the current inventory would last 4.2 months, up slightly from 3.8 months a year ago. Limited supply is keeping upward pressure on prices, even as demand softens.

Housing Prices and Market Conditions

The median existing home price rose 1.2% from a year ago to $409,200. Homes stayed on the market longer, with the median days on market rising to 36 from 32 a year ago.

First-time buyers represented 30% of sales, unchanged from last year, while all-cash transactions increased to 27% of total sales. Distressed sales, including foreclosures, remained at 2%.

Mortgage Rates and Consumer Sentiment

The 30-year fixed mortgage rate fell from 7.04% in January to 6.19% at the end of November, providing some relief for buyers. However, the sluggish labor market—with unemployment at 4.6% and annual wage growth at its slowest pace since May 2021—continues to constrain household confidence.

The University of Michigan’s Consumer Sentiment Index rose to 52.9 in December from 51.0 in November, reflecting modest improvement, but still nearly 30% below December 2024 levels.

Economists warn that while lower mortgage rates have nudged demand higher, no meaningful turnaround in the housing market is yet evident. “The near-term outlook for housing remains relatively stagnant,” said Ben Ayers, senior economist at Nationwide.

Outlook

The combination of limited housing inventory, sluggish labor market, and elevated prices is keeping U.S. home sales under pressure. Analysts say a significant drop in mortgage rates will likely be required to generate a stronger recovery in existing home sales.