US Existing Home Sales Surge to Near 3-Year High

Existing home sales in the United States surged by 5.1% from the previous month to an annualized rate of 4.35 million in December of 2025, firmly above market expectations of the sharpest increase in nearly two years to the highest level in nearly three years. The drop drove inventory to plunge by 18.1% from the previous month to 1,180,000, equivalent to 3.3 months of supply at the current sales rate. The median price of existing home sales eased further to $405,400 in the period, a 0.4% increase from the previous year. According to NAR Chief Economist Lawrence Yun, “2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales. However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. The gains were broad-based, with all four major regions improving from the prior month.”

Existing home sales in the United States rose by 0.5% from the previous month to an annualized rate of 4.13 million in November of 2025, a third straight increase to the highest level in nine months. It compared with market expectations of 4.2 million. The result was aligned with a pullback in benchmark mortgage rates amid a series of poor labor results released in the period. Sales of single-family homes rose 0.8% to 3.75 million. In the meantime, the median sales price for homes increased 1.2% from a year ago to $409,200, one of the weakest gains since mid-2023. With the sales increase, housing inventory fell by 5.9% from the previous month to 1.43 million units, equal to 4.2 months of supply and the weakest since March. “Existing-home sales increased for the third straight month due to lower mortgage rates this autumn,” NAR Chief Economist Lawrence Yun said in a statement. “However, inventory growth is beginning to stall.”

Existing home sales in the United States rose by 1.2% from the previous month to an annualized rate of 4.10 million in October of 2025, a second straight increase to the highest level in eight months, and loosely aligned with expectations. The result was aligned with a pullback in benchmark mortgage rates amid a series of poor labor results released in the period. Sales of single-family homes rose 0.8% to 3.71 million. In the meantime, the median sales price for homes were $415,200. With the sales increase, housing inventory fell by 07% from the previous month to 1.52 million units, equal to 4.4 months of supply. According to NAR Chief Economist Lawrence Yun, "Rents are decelerating which will reduce inflation and encourage the Federal Reserve to continue cutting rates and pulling back their quantitative tightening. This will help bring more homebuyers into the market since the Fed rate has an indirect impact on mortgage rates."