November Home Sales Lose Momentum as Inventory Tightens

The U.S. housing market showed signs of strain in November as higher prices, elevated mortgage rates, and a slowdown in available listings continued to weigh on buyers. New data from the National Association of Realtors shows that existing-home sales made only modest progress while inventory slipped at a key point in the year.

Sales of previously owned homes rose just 0.5% from October and were 1% lower than November 2024, coming in at a seasonally adjusted annual rate of 4.13 million units. Because the data is based on completed closings, it reflects buyer activity from early fall, when mortgage rates dipped slightly before settling into a narrow range.

Inventory Growth Pauses After Months of Gains

Housing supply, which had been slowly improving earlier in 2025, moved in the opposite direction in November. Total inventory fell to 1.43 million homes, down 5.9% from October, though still 7.5% higher than a year ago.

At the current sales pace, that equals a 4.2-month supply. A balanced market typically requires about six months of inventory, meaning buyers still have limited leverage in many areas.

“Inventory growth is beginning to stall,” said Lawrence Yun, chief economist at NAR. With homeowners sitting on strong equity positions and distressed sales near record lows, many sellers see little urgency to list during the winter months.

Delistings Increase, Keeping Price Pressure Intact

Seasonal delistings are common as winter approaches, but this year the trend was more pronounced. More sellers pulled their homes off the market after weeks or months without offers, especially in higher-priced areas.

That pullback is helping support prices. The median home price in November was $409,200, up 1.2% from a year earlier and the highest November reading on record. The median figure can shift depending on which price tiers are selling, and that trend was clear again this month.

Sales of homes priced between $100,000 and $250,000 fell nearly 8% year over year, while properties priced above $1 million saw a 1.4% increase. Higher-end buyers continue to show more resilience than entry-level shoppers.

Homes Take Longer to Sell

Buyers are taking more time to make decisions. Homes stayed on the market for an average of 36 days, up from 32 days last November. While not a dramatic jump, the increase points to hesitation among buyers dealing with affordability concerns and economic uncertainty.

First-time buyers accounted for 30% of purchases, unchanged from last year but well below the historical norm of around 40%. That gap highlights how difficult it remains for new buyers to break into the market.

Investors Step Back In

One notable shift was increased investor activity. Investors made up 18% of November sales, up from 13% a year ago. With some buyers sidelined and prices holding steady, investors appear more willing to reenter selective markets, especially where rental demand remains strong.

Affordability Outlook Remains Mixed

Yun noted that wage growth has been running ahead of home price gains, which helps affordability on paper. Still, that progress could stall if housing supply fails to expand meaningfully in 2026.

For now, the market remains in a holding pattern. Buyers face fewer listings, sellers are cautious, and prices continue to edge higher. Until inventory growth resumes or borrowing costs fall further, November’s slow pace may carry into the early months of the new year. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.