November saw a modest increase in U.S. existing home sales compared to the previous month, reaching a seasonally adjusted annual rate of 4.13 million units. However, this figure represents a slight decline from the same period last year, marking the first year-over-year drop since May. Despite the slowdown in sales volume, the median home price continued its upward trajectory, hitting an all-time high for November at $409,200.
Key Takeaways
- Existing home sales rose 0.5% in November from October but fell 1% year-over-year.
- The national median sales price for existing homes climbed 1.2% year-over-year to $409,200, an all-time high for November.
- Home prices have seen 29 consecutive months of annual increases.
- Affordability remains a significant challenge, particularly for first-time buyers.
- Inventory levels are up year-over-year but remain below pre-pandemic norms.
November Sales Performance
Sales of previously occupied U.S. homes experienced a slight uptick of 0.5% in November compared to October, according to the National Association of Realtors. This brought the seasonally adjusted annual rate to 4.13 million units. However, this figure was 1% lower than November of the previous year, indicating a cooling trend in year-over-year comparisons. Economists had anticipated a slightly higher pace of 4.14 million units. For the first eleven months of the year, home sales are down 0.5% compared to the same period in 2024.
Climbing Prices Despite Sluggish Sales
Despite the mixed sales figures, home prices continued their ascent. The national median sales price for existing homes rose 1.2% from November last year to $409,200. This marks the 29th consecutive month of annual price increases, even as the housing market has grappled with a slump that began in 2022 with rising mortgage rates. The current sales pace remains significantly below the historical norm of 5.2 million units annually.
Affordability and Inventory Challenges
While average long-term mortgage rates held near their yearly low point, affordability continues to be a major hurdle for many potential buyers, especially first-time homebuyers who lack equity from a previous home sale. Economic uncertainty and job market concerns are also contributing to buyers remaining on the sidelines. A persistent shortage of homes for sale, particularly in the more affordable segments of the market, exacerbates these challenges. First-time buyers accounted for only 30% of home sales in November, down from a historical average of 40%. An annual survey revealed that first-time buyers represented an all-time low of 21% of home purchases between July 2024 and June 2025, with their average age rising to a record 40 years old.
Inventory Levels
At the end of November, there were 1.43 million unsold homes on the market, a decrease of 5.9% from October but an increase of 7.5% from November of the previous year. This inventory level translates to a 4.2-month supply at the current sales pace, which is still below the 5- to 6-month supply considered indicative of a balanced market. The National Association of Realtors forecasts a significant jump in existing home sales next year, projecting a 14% increase, a more optimistic outlook than many other economists.
Future Outlook
Economists generally anticipate that the average rate on a 30-year mortgage will remain slightly above 6% in the coming year. This suggests that while sales might increase, affordability will likely continue to be a key factor influencing the market.