H
igh home prices, persistently elevated mortgage rates, and a shrinking inventory are dampening demand. In November, sales of existing homes ticked up only 0.5% from October and fell 1% compared with the same month last year, totaling an annualized 4.13 million units—based on closings that reflect contracts signed in September and October when rates dipped slightly before stabilizing.

    Inventory fell to 1.43 million listings, a 5.9% drop from October but 7.5% above the 2023 level, giving a 4.2‑month supply. A balanced market would show a six‑month supply. “Inventory growth is stalling,” said Realtors chief economist Lawrence Yun, noting that distressed sales are at historic lows and homeowners are reluctant to list during winter. Sellers are pulling homes off the market at a higher rate than usual, further tightening supply and keeping price pressure high.

    The median sale price reached $409,200 in November, up 1.2% from last year and the highest November figure on record. The median metric can skew toward the higher end of the market, which is currently outperforming the lower end. Homes priced $100k‑$250k dropped nearly 8% YoY, while those above $1 million rose 1.4%. Yun added that wage growth is outpacing price gains, improving affordability, but future affordability could suffer if supply doesn’t keep pace.

    Homes linger longer on the market—36 days versus 32 days in October. First‑time buyers accounted for 30% of sales, unchanged from a year ago, while investor activity climbed to 18% from 13% in November 2024. These shifts signal a market where supply constraints and high prices continue to shape buyer behavior.