US existing home sales rose 0.5% in November to a seasonally adjusted annual rate of 4.13 million units, marking the third consecutive monthly gain as mortgage rates declined 1.
The increase signals growing momentum in the housing market after months of sluggish activity, though sales remain down from year-ago levels as affordability challenges persist.
Key Takeaways
- Home sales reached highest level in nine months
- National median price rose 1.2% annually to 409,200
- Inventory conditions beginning to stall market recovery
Market Context
November’s sales pace of 4.13 million units represents the highest level in nine months, according to National Association of Realtors data 2. However, sales remain significantly below historical norms, with the housing market still grappling with the aftermath of the Federal Reserve’s aggressive interest rate hikes.
The national median sales price increased 1.2% year-over-year to 409,200, marking the 29th consecutive month of annual price gains 3. This persistent price growth continues to strain affordability for many potential buyers despite the recent decline in mortgage rates.
Regional Performance
California’s housing market showed particular strength, with November home sales reaching a seasonally adjusted annualized rate of 287,940 units – the highest since September 2022 4. The state’s sales jumped 1.9% from October, outpacing the national average.
The improvement came as mortgage rates retreated from recent peaks, providing some relief to buyers who had been sidelined by borrowing costs exceeding 7% earlier this year.
Market Challenges
Despite the positive monthly trend, industry analysts noted concerning signs for sustained recovery. Housing inventory, which had been gradually improving, is “beginning to stall,” according to recent market analysis 5.
The combination of limited supply and elevated prices continues to create headwinds for the market, particularly affecting first-time buyers who face the dual challenge of high home prices and tighter lending standards.
Outlook
The three-month streak of gains represents the longest period of sustained improvement since early 2023. However, year-over-year comparisons remain negative, reflecting the challenging environment that has persisted throughout much of 2024.
Market participants are closely watching mortgage rate trends and Federal Reserve policy decisions, as borrowing costs remain the primary driver of housing demand in the current cycle.
Not investment advice. For informational purposes only.
References
1“November US homes sales rose from the previous month, but down from 2024 as prices climb”. KARE 11. Retrieved December 19, 2025.
2“Home Sales Rise in November as Mortgage Rates Ease”. Realtor.com. Retrieved December 19, 2025.
3“November US homes sales rose from the previous month, but down from 2024 levels as prices continue to climb”. SF Gate. Retrieved December 19, 2025.
4“One word defines California’s housing market today”. KTLA. Retrieved December 19, 2025.
5“Home sales ticked up in November, but inventory is ‘beginning to stall'”. Inman. Retrieved December 19, 2025.