Have you ever watched a market that feels like it’s holding its breath? That’s exactly how the U.S. housing scene looked in November 2025. Sales of previously owned homes barely moved the needle, and the supply of listings took an unexpected dip just when we thought things might finally loosen up.
It’s frustrating, isn’t it? After months of hoping for more options and perhaps a bit of relief on prices, the numbers tell a different story. Let’s dive into what actually happened and what it might mean for anyone thinking about buying, selling, or just keeping an eye on the real estate landscape.
A Closer Look at November’s Existing Home Sales
The latest figures show that sales of existing homes crept up by a modest 0.5% from October, reaching an annualized pace of around 4.13 million units. On a year-over-year basis, though, activity was down about 1%. In my view, that tiny monthly gain feels more like treading water than real progress.
These closings largely reflect contracts signed back in September and October, a period when mortgage rates teased us with a slight dip before settling into a stubborn range. Buyers who jumped in early might have locked in decent terms, but many others likely stayed on the sidelines, waiting for something better that never quite arrived.
Why Inventory Suddenly Stalled
Perhaps the most surprising twist was the drop in available homes. At the end of November, there were roughly 1.43 million properties on the market – that’s a 5.9% decline from October. Yes, the total was still 7.5% higher than the year before, but the monthly pullback caught a lot of observers off guard.
At the current sales pace, that translates to about a 4.2-month supply. For context, a balanced market usually sits around six months. When supply tightens like this, it inevitably puts upward pressure on prices and makes the whole process feel even more competitive.
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.
– Chief economist at a major real estate association
That observation rings true. Many homeowners are sitting on substantial equity and low-rate mortgages from years past. Why rush to sell and trade up into higher rates? It’s a rational choice, but collectively it keeps the market constrained.
Add in the seasonal factor – sellers often pull listings heading into winter – and this year’s delisting rate was notably higher than usual. The result? Fewer choices for buyers who are already grappling with affordability challenges.
Home Prices Keep Climbing Despite the Slowdown
Here’s where things get interesting. Even with softer sales, the median price for a home sold in November hit $409,200. That’s up 1.2% from the previous year and marks the highest November reading ever recorded.
Medians can sometimes mask what’s happening at different price tiers, and that’s certainly the case here. The lower end of the market – homes between $100,000 and $250,000 – saw sales drop nearly 8% year over year. Meanwhile, properties over $1 million actually increased by 1.4%.
In my experience following these trends, this divergence highlights how the luxury segment continues to perform relatively well, often driven by cash buyers or those less sensitive to rate fluctuations. Entry-level buyers, on the other hand, are getting squeezed the hardest.
- Lower-price homes: Demand cooling rapidly
- Mid-range properties: Steady but cautious activity
- High-end homes: Still attracting serious buyers
The good news buried in the data? Wage growth has been outpacing home price increases lately, which offers a sliver of hope for affordability. But if supply doesn’t rebound meaningfully, that advantage could evaporate quickly.
How Long Are Homes Sitting on the Market?
Another clear sign of a cooling market: Homes took longer to sell. The typical property lingered for 36 days in November, compared to 32 days the year before. That’s not dramatic, but it does suggest buyers have a bit more breathing room to negotiate or walk away.
Gone are the frenzy days of multiple offers within hours. Today, sellers might need to price more realistically or make concessions to close the deal. It’s a shift that feels healthier in the long run, even if it’s painful for those trying to move right now.
Who Is Actually Buying Right Now?
First-time buyers accounted for 30% of transactions, unchanged from the prior year but still well below the historical average of around 40%. High prices and rates continue to create a tough entry point for younger households or those without substantial savings.
On the flip side, investors made a noticeable return, representing 18% of purchases – up from 13% a year earlier. With rental demand remaining strong in many areas, real estate still looks attractive to those seeking income-producing assets.
That investor activity could help absorb some inventory over time, but it also means fewer homes available for owner-occupants. It’s a double-edged sword that often fuels debates about housing accessibility.
The Bigger Picture: Mortgage Rates and Buyer Sentiment
Let’s be honest – mortgage rates are the elephant in the room. They hovered in a narrow band through the fall, offering little incentive for locked-in homeowners to list or for hesitant buyers to commit. Any hope for a sharp decline seems tied to broader economic signals.
Until rates ease more convincingly, we might continue seeing this pattern: modest sales volume, tight inventory, and gradual price growth. It’s not a crash, but it’s certainly not the robust recovery some were predicting either.
I’ve found that markets like this reward patience. Buyers who can wait for the right opportunity often end up in a stronger position, while sellers who price aggressively can still move properties quickly.
What Might Change Heading Into 2026?
Looking ahead, several factors could shake things up. If economic growth remains solid and inflation continues cooling, the Federal Reserve might deliver more rate cuts – potentially bringing mortgage rates down into a more comfortable zone.
Spring traditionally brings a surge in listings as sellers emerge from winter hibernation. A strong seasonal increase could finally tip the supply balance and give buyers more leverage. Of course, life events like job relocations or family changes will always prompt some moves regardless of market conditions.
One wildcard worth watching: policy changes. New administration priorities around housing affordability, tax incentives, or zoning reforms could influence both supply and demand in meaningful ways.
Key Takeaways for Buyers and Sellers
If you’re thinking about buying soon, focus on getting pre-approved and understanding your true budget in today’s rate environment. Work with agents who know the local nuances – some markets are softer than the national headlines suggest.
- Monitor inventory trends in your target neighborhoods
- Be ready to act quickly on well-priced listings
- Consider slight concessions like rate buydowns if needed
- Don’t try to time the bottom perfectly – life doesn’t wait
For sellers, pricing realistically from day one remains the best strategy. Highlight your home’s strengths, make minor updates if budget allows, and be flexible on terms. In a market where days on market are creeping up, first impressions matter more than ever.
Ultimately, real estate has always been cyclical. The current stall feels uncomfortable, but history shows these periods often precede shifts that create new opportunities. Whether you’re building wealth through property or simply needing a place to call home, staying informed helps you navigate whatever comes next.
The November numbers remind us that housing doesn’t move in straight lines. It reacts to rates, confidence, jobs, and countless individual decisions. Right now, caution seems to be winning the day – but markets have a way of surprising us when we least expect it.
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