T
he housing market has shown a significant rebound this fall, with home sales experiencing a notable increase in November. According to the National Association of REALTORS®, existing-home sales rose 4.8% month over month and 6.1% annually, marking the second consecutive month of gains after a sluggish summer. NAR Chief Economist Lawrence Yun attributes this momentum to the economy's steady job growth, increasing housing inventory, and consumers' adaptation to higher mortgage rates.

    Home prices continue to rise, with a 4.7% year-over-year increase in November, bringing the median existing-home sales price to $406,100. In some markets, buyer competition remains strong, with listings receiving an average of 2.1 offers and 18% selling above list price. To stay competitive, buyers are waiving inspection and appraisal contingencies at higher rates.

    Homebuyers now have more inventory options, with nationwide listings up nearly 18% compared to last year. As a result, the median days on the market for sold properties increased to 32 days in November, although 53% of properties still sold within a month.

    Many current homeowners are leveraging their growing equity to purchase new homes, while cash buyers continue to dominate the market at historical high levels. First-time homebuyers also made up 30% of sales in November, despite being historically underrepresented in the market.

    Regional sales trends varied, with the Northeast experiencing an 8.5% month-over-month increase and a 10% year-over-year median price gain. The Midwest saw a 5.3% monthly rise and a 7.3% annual median price increase.

    Optimism is growing about the housing market's prospects in 2025, with home builders expressing increased confidence and construction of single-family homes posting a 7% year-over-year increase in November. Builders are also offering more incentives to attract buyers, including price reductions and mortgage rate buydowns.