Sales of previously owned homes in the United States registered a modest increase in November compared to October, but showed a year-on-year decline for the first time in six months. This slowdown occurred even as average long-term mortgage rates remained near their lowest point of the year.
November Sales Data Shows Mixed Signals
According to data released on Friday, 19 December 2025, by the National Association of Realtors, existing home sales rose by 0.5% last month from October. This brought the seasonally adjusted annual rate to 4.13 million units. However, this figure was slightly below the 4.14 million pace forecast by economists polled by FactSet.
More notably, sales fell by 1% compared with November 2024. This marks the first annual decline since May, interrupting a brief period of recovery. The housing market has been sluggish since 2022, when mortgage rates began their ascent from historic lows, with sales last year hitting their weakest level in nearly three decades.
Persistent Price Growth Amid Market Slump
Despite the ongoing sales slump, property prices continue their relentless upward trajectory. The national median sales price in November was $409,200, representing a 1.2% increase from the same month a year earlier.
This means home prices have now risen on an annual basis for 29 consecutive months. The market has been stuck at an annual sales pace of around 4 million units since 2023, which is significantly below the historical norm of approximately 5.2 million.
Market Stagnation and Future Outlook
The current data paints a picture of a market in a prolonged state of stagnation. Affordability remains a key hurdle for many potential buyers, even with mortgage rates stabilising. The combination of high prices and elevated borrowing costs continues to suppress sales volume, keeping activity well below pre-slump levels.
Analysts will be watching closely to see if the slight monthly gain in November signals the beginning of a more sustained recovery, or if the annual decline indicates that the market's challenges are far from over. The persistent price growth suggests that demand still outpaces supply in many areas, a fundamental imbalance that continues to define the US housing landscape.
