- Prior was 4.35m
- Home sales change -8.4% vs +5.1% prior
- Days on the market 46 vs 41 prior
- Inventory at 3.7 months
- Median prices $396,800, up 0.9% y/y
This is the worst reading since September 2024 and is a sharp reversal from what looked like a nice recovery. I tend to think this is a blip in a month that's tricky to seasonally adjust for.
In October, existing home sales rose 1.2% month-over-month to a seasonally adjusted annual rate of 4.10 million, marking a second straight increase to an eight-month high. The median sales price stood at $415,200, and inventory sat at 1.52 million units, equal to 4.4 months of supply.
November saw a 0.5% increase, pushing sales to 4.13 million annualized — a third consecutive monthly gain. The median price rose 1.2% year-over-year to $409,200, while inventory dipped 5.9% from October to 1.43 million units. The Northeast led regional gains at 4.1%, followed by the South at 1.1%.
December closed out the quarter with a sharp 5.1% surge to 4.35 million annualized — well above the consensus forecast and the strongest pace in nearly three years. All four major regions posted month-over-month gains, led by the South at 6.9% and the West at 6.6%. The median price eased to $405,400, while inventory dropped 18.1% to 1.18 million units — 3.3 months of supply.
NAR Chief Economist Lawrence Yun noted that while 2025 was another tough year overall, Q4 brought improving conditions through lower mortgage rates and slower price growth, suggesting positive momentum heading into 2026.
