Sales of existing single-family homes and condos rose a seasonally adjusted 0.5% in November from the previous month, according to the National Association of Realtors, as the slow season sets in and some prospective homebuyers wait to see whether mortgage rates will fall further.
November’s modest gain in existing-home sales pushed the seasonally adjusted annual total to 4.13 million. Since the same month in 2024, sales have gone up 1%.
A 6% decline in condo sales so far this year tamped down overall sales activity in November, NAR chief economist Lawrence Yun said in a statement. Though condos are more affordable than single-family houses, he said, rising insurance costs and condo association fees are keeping more people from buying them.
Sales rose the most from October to November in the Northeast, by 4.1%. They were up 2% in the Midwest and 1.1% in the South, and remained flat in the West. However, on a year-to-year basis, all four regions saw either no change or a decline in sales.
NAR expects a sales boost in 2026
Yun said he remains optimistic about the direction the housing market will take in 2026. He said earlier this fall that existing sales will rise 14% next year, assuming the average rate for a 30-year fixed-rate mortgage continues its descent from 7% to 6%. He compared the current environment to the post-recession period in the early 2010s, when a 1% drop in the average rate led to an increase in sales of 1 million homes.
Another factor that he said should give sales a boost next year is that the Federal Reserve seems likely to cut a key interest rate again in 2026. Though the Fed has no direct influence on mortgage rates, its actions can indirectly influence the housing market.
The median home price across the U.S. in November for existing single-family homes was $414,300, according to NAR, up 1.2% from a year earlier. The median for condos, at $358,600, was also up slightly, 0.1%.
“The pullback in supply should keep a floor under home prices,” Nancy Vanden Houten, Oxford Economics' lead U.S. economist, said in a statement about November’s data.
Wage growth continues to outpace home price gains, which Yun said is making housing more affordable for potential buyers. Others studying the overall economic picture see a less rosy immediate future.
“The upturn in joblessness and sagging consumer confidence will likely limit further gains until the Fed trims rates a few more times,” Sal Guatieri, senior economist for BMO Capital Markets, said in a statement.