Existing home sales recorded a slight increase in November, supported by a decline in mortgage interest rates that helped sustain a three-month recovery in the housing market. However, as winter approaches, many homeowners appear to be holding off on listing their properties, preferring to wait for further market improvement in the coming months.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), noted that growth in housing inventory has begun to slow. According to Yun, the decline in distressed property sales to historically low levels, alongside housing wealth reaching record highs, has made homeowners less inclined to sell during the winter season. NAR data showed that housing inventory fell by 6% since October. Nevertheless, inventory posted an annual increase of 8% compared to the same period last year, offering buyers more options than in recent years.
Although seasonal changes are common at this time of year, realtor.com® reported a record rise in homes being withdrawn from the market recently, with sellers removing around 6% of listings. Danielle Hale, Chief Economist at realtor.com®, believes this reflects sellers’ preference to wait for better conditions rather than reduce asking prices.
At the national level, home sales improved slightly last month but at a slower pace. Existing home sales—which include single-family homes, townhouses, condominiums, and co-ops—rose by 0.5% in November. Despite this increase, sales volumes remain 1% lower than a year ago, according to the National Association of Realtors. Meanwhile, home prices continued to rise, up 1.2% year-on-year, bringing the median existing home price in November to $409,200.
Lower mortgage interest rates are creating new opportunities for buyers who had previously hesitated to enter the market. The average mortgage rate fell to 6.24% in November, compared with around 7% at the beginning of 2025, helping to reduce borrowing costs.
Brad O’Connor, Chief Economist at the Florida Realtors Association, noted that once rates dip slightly below 6.5%, a large number of buyers are encouraged to re-enter the market. He added that during the past fall, this modest decline led to a noticeable increase in the number of homes under pending sales contracts.
In Florida, for example, pending sales of single-family homes rose by 23% in October compared with the previous year following the recent drop in mortgage rates. The National Association of Realtors expects that if mortgage rates fall by one full percentage point to reach 6% by 2026, the number of qualified buyers could increase by around 5.5 million households, including 1.6 million renters who may enter the market as first-time buyers.
However, with the widening gap between wages and home prices, rising demand, and a decline in housing supply, Yun warns that the continuation of this trend could place further upward pressure on home prices and negatively affect affordability for some households.
