Housing Market Sees a Surprising Burst of Sales Activity in November 2025

The housing market showed a surprising burst of activity in November, with existing-home sales nudging up by a modest 0.5%. This small increase signals a potential shift in momentum, offering a glimmer of optimism for buyers and sellers alike.

Here's the bottom line: Existing-home sales saw a 0.5% increase in November, reaching a seasonally adjusted annual rate of 4.13 million units, according to the National Association of REALTORS® (NAR). It’s been a bit of a rollercoaster for the housing market lately, and this bit of good news is definitely something to pay attention to.

As someone who lives and breathes real estate, I’ve been watching these numbers closely. It feels like we’ve been in a bit of a holding pattern, with both buyers and sellers trying to figure out their next move. So, this uptick in November? It tells me that despite the challenges, people are still making the decision to buy and sell homes.

Housing Market Sees a Surprising Burst of Sales Activity in November 2025

What’s Driving This November Sales Boost?

The main engine behind this sales increase, according to NAR Chief Economist Lawrence Yun, is the dip in mortgage rates we saw this past autumn. When borrowing money to buy a home becomes a little cheaper, it opens the door for more people to make that big purchase. It's like a gentle nudge, making those monthly payments a bit more manageable.

• Mortgage Rates Cool Down: The average 30-year fixed-rate mortgage in November was around 6.24%. That’s down from 6.81% a year ago, and even a hair less than the previous month. This is a significant factor. Lower rates mean buyers can potentially afford more house, or at least feel more comfortable with their monthly commitment.
• Wage Growth Helping Affordability: Another positive sign is that wage growth is outpacing home price increases. This is a crucial point. It means that, on average, people are earning more relative to the cost of homes, which can make affording a place a little easier.

Inventory: A Bit of a Sticking Point

While sales went up, the number of homes available for sale (inventory) took a bit of a dive. It decreased by 5.9% from October, leaving us with 1.43 million units. This is equivalent to a 4.2-month supply, which is down from last month.

What does this mean? It suggests that more homes are selling faster than new ones are coming onto the market. This can lead to more competition among buyers, potentially driving up prices in some areas. Lawrence Yun’s point that “inventory growth is beginning to stall” is really important to note. When there aren't enough homes, it creates a seller's market, which can be tough for those looking to buy.

I see this firsthand. When a good property hits the market now, it often gets multiple offers and sells quickly. Homeowners who have equity are often sitting on their properties, enjoying the wealth they've built over the years, and might not feel the urgency to sell, especially during the winter months.

A Look Around the Country: Regional Differences

The housing market isn’t a one-size-fits-all situation. Different parts of the country are experiencing different trends:

• Northeast and South See Sales Growth: Both the Northeast and the South reported increases in month-over-month sales. The Northeast saw a 4.1% jump, while the South saw a 1.1% increase. Year-over-year, sales were unchanged in these regions.
• Midwest and West Show Declines: The Midwest experienced a 2.0% decrease in sales from October to November, and the West remained flat month-over-month, though down year-over-year.
• Price Trends Vary:
  • The Northeast saw a 1.1% increase in median prices.
  • The Midwest saw a more significant 5.8% increase year-over-year in median prices.
  • The South also saw a modest 0.8% increase.
  • Interestingly, the West experienced a slight 0.9% decrease in its median price year-over-year, with the median price in November sitting at $618,900. This could be a very small sign of cooling in one of the traditionally hottest markets.

Here’s a quick rundown of the regional picture:

Single-Family Homes Still Leading the Pack

When we break down the sales by housing type, single-family homes continued to be the stronger segment. They saw a 0.8% increase in sales month-over-month. Condominiums and co-ops, on the other hand, saw a 2.6% decrease in sales, both month-over-month and year-over-year.

This trend aligns with what I often advise clients. Single-family homes offer more space and privacy, which are often highly sought after. While condos can be more affordable upfront, buyers need to factor in those monthly condo association fees, which are also rising and can add up. Remember, the median price for a condo was significantly lower than for a single-family home, but those ongoing fees are a crucial part of the total cost of ownership.

Who’s Buying and How Are They Paying?

Let’s look at the buyers and their purchasing habits:

• First-Time Buyers: The percentage of sales to first-time homebuyers remained steady at 30%. This is an important statistic because new homeowners are essential for a healthy market.
• Cash Sales: Cash sales accounted for 27% of transactions, which is down slightly from the previous month but up from a year ago. This indicates that some buyers, perhaps those with significant equity or wealth, are still choosing to pay in cash.
• Individual Investors: We saw an increase in sales to individual investors or second-home buyers, making up 18% of transactions. This suggests that some investors see opportunities in the market, perhaps anticipating future appreciation.
• Distressed Sales: Thankfully, distressed sales (foreclosures and short sales) remain at historic lows, at just 2%. This is a very positive sign for the stability of the market, showing fewer people are in a situation where they are forced to sell their homes at a loss.

Time on Market: Things Are Slowing Down Slightly

Homes are staying on the market a bit longer. The median time on market was 36 days, which is up from 34 days last month and 32 days a year ago. This slight increase in how long homes are available might give buyers a little more breathing room to make decisions, but it’s still a relatively quick sales pace overall.

My Take on These Numbers

What I’m seeing here is a market that’s trying to find its footing. The lower mortgage rates have certainly provided a welcome boost. It’s encouraging to see sales tick up for three months straight. However, the tight inventory is a persistent challenge. If we don’t see more homes coming onto the market soon, it could put a damper on future sales growth, even with favorable mortgage rates.

The fact that wage growth is keeping pace with home prices is a critical piece of the affordability puzzle. This is what helps to keep the dream of homeownership alive for many. But we always have to be mindful of the balance. Too much of a price increase without corresponding wage growth can quickly make homes unaffordable again.

I think the November report gives us a nuanced picture. It’s not a runaway market, but it’s also not a market that’s collapsing. It’s a market that’s adapting, and where smart buyers and sellers can still find opportunities.

Looking Ahead

The housing market is always influenced by broader economic factors. Continued stability in mortgage rates and a healthy job market will be key to sustaining this positive sales trend. We also need to keep an eye on whether more homeowners will feel encouraged to list their properties as we move into the spring market.

Overall, the November numbers from NAR offer a reason for cautious optimism. The rise in sales, driven by more affordable borrowing costs, is a good sign, but the ongoing inventory constraints are definitely something to watch as we progress through the coming months.