Existing-Home Sales Rise Slightly, but Buyers Stay Cautious Heading Into Winter

Existing-home sales saw a modest increase in November, marking the third straight monthly gain. Still, many buyers remain hesitant as affordability challenges, rising prices, and economic uncertainty continue to weigh on demand.

According to the latest report from the National Association of Realtors, existing-home sales rose 0.5% month over month, reaching a seasonally adjusted annual rate of 4.13 million. Even with the monthly increase, sales were 1.0% lower than a year ago.

Mortgage Rates Help, but Inventory Growth Slows

NAR Chief Economist Lawrence Yun said recent improvements are tied to lower mortgage rates earlier in the fall. However, he noted that inventory growth is beginning to lose momentum.

“Existing-home sales increased for the third straight month due to lower mortgage rates this autumn,” Yun said. “But homeowners are not rushing to list during the winter, especially with housing wealth near record highs and distressed sales at historic lows.”

National Housing Snapshot for November

Sales

• 4.13 million annual pace
• Up 0.5% month over month
• Down 1.0% year over year

Inventory

• 1.43 million homes for sale
• Down 5.9% from October
• Up 7.5% from November 2024
• 4.2 months of supply

Prices

• Median existing-home price: $409,200
• Up 1.2% year over year
• 29th straight month of annual price growth

Single-Family Homes Outperform Condos

Single-family homes continued to drive activity, while condo and co-op sales struggled.

Single-Family Homes

• Sales up 0.8% month over month
• Annual pace: 3.75 million
• Median price: $414,300, up 1.2% year over year

Condos and Co-ops

• Sales down 2.6% month over month and year over year
• Annual pace: 380,000
• Median price: $358,600, up just 0.1% year over year

Yun noted that while condos cost less upfront, rising HOA fees are making them less affordable than they appear on paper.

Regional Differences Remain Sharp

Housing trends varied widely across the country.

Northeast

• Sales up 4.1% month over month
• Flat year over year
• Median price: $480,800, up 1.1%

Midwest

• Sales down 2.0% month over month
• Down 3.0% year over year
• Median price: $319,400, up 5.8%

South

• Sales up 1.1% month over month
• Flat year over year
• Median price: $361,000, up 0.8%

West

• Sales unchanged month over month
• Down 1.3% year over year
• Median price: $618,900, down 0.9%

Affordability Still Holding Buyers Back

Even with mortgage rates near recent lows, affordability remains tight. Bright MLS Chief Economist Lisa Sturtevant said many buyers are cautious for two main reasons.

First, home prices continue to rise in many areas. Second, economic concerns such as job security and everyday living costs are causing buyers to pause.

In October, the median home price was $415,200. At a 6.25% mortgage rate, that translates to a monthly payment of roughly $2,840. A year earlier, prices were lower but rates were higher, leaving monthly payments nearly unchanged.

Looking Ahead to 2026

Winter is typically the slowest season for housing, and experts expect that trend to continue. When all of 2025 is tallied, home sales are likely to be slightly higher than 2024—but still well below long-term averages.

Looking ahead, several factors will shape the 2026 housing market:

• Mortgage rates are expected to drift lower, which could bring more buyers back
• Labor market uncertainty could limit buyer confidence
• Inventory is rising overall, but remains tight in high-demand areas

The Bottom Line

Existing-home sales are showing small signs of improvement, helped by easing mortgage rates. Still, rising prices, limited inventory, and economic uncertainty are keeping many buyers cautious. As the market moves toward 2026, affordability and supply will remain the key issues shaping buyer and seller behavior. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.