November existing home sales edge up while inventory falls

The pace of existing home sales rose yet again in November, buoyed by lower mortgage rates during the fall, according to data released Friday by the National Association of Realtors (NAR).

In November, the pace of existing home sales rose to 4.13 million, up 0.5% from a month prior. On an annual basis, the pace was down 1%.

According to Lisa Sturtevant, chief economist at Bright MLS, while the month-over-month increase was positive to see, it’s not a strong indicator that lower mortgage rates are drawing in buyers in significant numbers.  

“Buyers are also concerned about their financial situations. Anxiety over job security and prices of goods and services has made some buyers hold back,” Sturtevant said in a statement. “Winter is typically the slowest time for the housing market, and this year will be no exception. When the full year’s home sales data are in, 2025 sales likely will be slightly higher than 2024 but still well below long-term averages.”

The increased pace in home sales resulted in the number of unsold units dropping 5.9% compared to a month prior to 1.43 million, which represents 4.2 months of supply of unsold inventory at the current sales pace. Despite the monthly decrease, the level of unsold inventory was up 7.5% annually in November.

“Existing-home sales increased for the third straight month due to lower mortgage rates this autumn,” Lawrence Yun, NAR’s chief economist, said in a statement. “However, inventory growth is beginning to stall. With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months.”

The median home sales price rose yet again last month, increasing 1.2% annually to $409,200. That marked the 29th consecutive month of year-over-year price increases.

“Wage growth is outpacing home price gains, which improves housing affordability. Still, future affordability could be hampered if housing supply fails to keep pace with demand,” Yun said.

Additionally, according to NAR’s Realtors Confidence Index, the median days on market for a property was 36 days in November, up from 34 days a month prior and 32 days a year ago.

In total, 30% of sales were attributed to first-time buyers, down from 32% in October, but the same as it was a year ago. The share of all-cash transactions fell two percentage points from a month prior to 27%, although that was up from 25% in November 2024.

Despite the drop in all-cash transactions, the share of individual investor or second-home buyers rose to 18%, up from 16% a month ago and 13% a year prior.

Regionally, the pace of existing home sales rose in the Northeast (510,000 homes) and South (1.89 million), jumping 4.1% and 1.1% month over month, respectively.

The pace slowed on a monthly basis in the Midwest, falling 2% to 970,000, and remained unchanged in the West at an annual rate of 760,000. On an annual basis, the pace of existing home sales was unchanged in the Northeast and South but fell in the Midwest (-3%) and the West (-1.3%).