November home sales struggle as supply stalls

The US housing market is facing a perfect storm of challenges, with high home prices, stubbornly high mortgage rates, and a dwindling supply of homes for sale. As of December 2025, the market is showing signs of slowing down, with sales of previously owned homes rising by only 0.5% in November compared to October, and 1% lower than the same period in 2024. According to the National Association of Realtors, sales came in at an annualized rate of 4.13 million units, a figure that reflects contracts likely signed in September and October when mortgage rates briefly dipped before stabilizing.

This slowdown can be attributed to various factors, including the limited supply of homes available for purchase. In November, the number of homes for sale fell to 1.43 million, a 5.9% decrease from October, although it remains 7.5% higher than the same period in 2024. At the current sales pace, this translates to a 4.2-month supply, which is below the six-month supply considered balanced between buyers and sellers. Lawrence Yun, chief economist for the Realtors, notes that “inventory growth is beginning to stall,” citing the low number of distressed property sales and high housing wealth as reasons why homeowners are in no hurry to list their properties during the winter months.

Impact on Home Prices and Sales

The limited supply of homes is putting upward pressure on home prices, with the median price of a home sold in November reaching $409,200, a 1.2% increase from November 2024 and the highest November reading on record. However, it’s essential to note that the median measurement can be skewed by the types of homes being sold. Currently, the high-end market is performing better than the low-end market, with sales of homes priced over $1 million increasing by 1.4% year-over-year, while sales of homes in the $100,000 to $250,000 range declined by nearly 8%.

Furthermore, homes are staying on the market longer, with an average of 36 days compared to 32 days in November 2024. First-time homebuyers accounted for 30% of sales, unchanged from the previous year, although historically they make up around 40% of sales. Investors are also re-entering the market, making up 18% of transactions, up from 13% in November 2024. As Yun points out, “wage growth is outpacing home price gains, which improves housing affordability,” but the future of affordability remains uncertain if housing supply fails to keep pace with demand.

Challenges for Potential Homebuyers

Potential homebuyers are facing significant challenges in the current market. With high home prices, stubbornly high mortgage rates, and a limited supply of homes, it’s becoming increasingly difficult for buyers to find and purchase a home. The decline in supply is also leading to a higher rate of delisting, where sellers remove their properties from the market, often due to a lack of interest or unsuccessful sales. As the market continues to evolve, it’s crucial for buyers to stay informed and adapt to the changing landscape to navigate the complex and competitive world of real estate.