November US homes sales rose from the previous month, but down from 2024
as prices climb
[December 20, 2025] By
ALEX VEIGA
Sales of previously occupied U.S. homes rose in November from the
previous month, but slowed compared to a year earlier for the first time
since May despite average long-term mortgage rates holding near their
low point for the year.
Existing home sales rose 0.5% in last month from October to a seasonally
adjusted annual rate of 4.13 million units, the National Association of
Realtors said Friday.
Sales fell 1% compared with November last year. The latest sales figure
came in slightly below the 4.14 million pace economists were expecting,
according to FactSet.
Through the first 11 months of this year, home sales are down 0.5%
compared to the same period last year.
“It’s possible that 2025, unless December (sales) figures really
improve, we may be technically slightly down from one year ago,” said
Lawrence Yun, NAR’s chief economist.
One factor limiting home sales is weaker demand for condominiums. Sales
of condos are down 6% so far this year, Yun noted.
Despite sluggish sales, home prices continued to climb last month. The
national median sales price increased 1.2% in November from a year
earlier to $409,200, an all-time high for any November on data going
back to 1999.
Home prices have risen on an annual basis for 29 months in a row, even
as the housing market has been mired in a slump that began in 2022 when
mortgage rates began climbing from historic lows. Sales of previously
occupied U.S. homes sank last year to their lowest level in nearly 30
years.
Sales have been stuck at around a 4-million annual pace now going back
to 2023. That’s well short of the 5.2-million annual pace that’s
historically been the norm.
Home sales got a boost this fall as the average rate on a 30-year
mortgage declined at the end of October to 6.17%, the lowest level in
more than a year.
Even so, affordability remains a challenge for many aspiring homeowners,
especially first-time buyers who don’t have equity from an existing home
to put toward a new home purchase. Uncertainty over the economy and job
market are also keeping many would-be buyers on the sidelines.
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A "For Sale" sign is displayed in front of a home in Prospect
Heights, Ill., Monday, Dec. 15, 2025. (AP Photo/Nam Y. Huh)
 A shortage of homes for sale,
especially in the more affordable end of the market, continues to
weigh especially on first-time homebuyers. They accounted for 30% of
homes sales last month. Historically, they made up 40% of home
sales.
An annual survey of homebuyers by NAR showed
first-time buyers accounted for an all-time low 21% of home
purchases between July 2024 and June 2025, while the average age of
such homebuyers rose to a record-high of 40.
Homes purchased last month likely went under contract in September
and October, when the average rate on a 30-year mortgage ranged from
6.5% to 6.17%, according to Freddie Mac. Mortgage rates have mostly
remained close to their October low in recent weeks.
Home shoppers who can afford to buy at current mortgage rates
benefited from a wider selection of properties on the market last
month than a year ago, although the number of homes for sale in
November declined from the previous month.
There were 1.43 million unsold homes at the end of last month, down
5.9% from October and up 7.5% from November last year, NAR said.
The latest inventory snapshot remains well below the roughly 2
million homes for sale that was typical before the COVID-19
pandemic.
November’s month-end inventory translates to a 4.2-month supply at
the current sales pace. Traditionally, a 5- to 6-month supply is
considered a balanced market between buyers and sellers.
Yun is forecasting that existing U.S. home sales will jump 14% next
year. That’s more optimistic than several other housing economist
forecasts, which range from a 1.7% to 9% increase.
Economists generally forecast that the average rate on a 30-year
mortgage will remain slightly above 6% next year.
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