T
he residential real estate market experienced a significant slowdown in November due to persistently high mortgage rates. According to Realtor.com's senior economist Ralph McLaughlin, this resulted in the slowest market since January of this year and the slowest November in five years.

    High mortgage rates led many budget-minded buyers to sit out the fall housing market, causing for-sale homes to linger on listing pages. The 30-year fixed mortgage rate pushed ever closer to 7%, making it harder for would-be homeowners to afford their desired homes. Realtor.com's 2025 housing forecast projects that mortgage rates will average around 6% next year.

    Despite the market slowdown, home prices showed a slight dip in November, with the median home price dropping by 0.7% year over year to $416,880. However, the median price per square foot grew by 1.6%, indicating an increase in smaller and more affordable homes entering the market.

    Active listings reached new highs this November, not seen since before the COVID-19 pandemic, as buyers took a step back from the market. The total amount of homes for sale rose by 26.2% compared to last year, with the South boasting the most housing stock, up 34.8% year over year.

    The West and Midwest also saw significant increases in inventory, while the Northeast had fewer new listings. New listings were a mixed bag across regions, with the West leading the way with a 6.3% bump.

    Buyers looking for the most housing to choose from should head to San Diego, where housing stock surged 52.5% year over year. The days on the market have spiked, but homes are still selling quicker than pre-pandemic levels. This could be an opportunity for buyers to take their time weighing options without feeling rushed.

    Sellers, however, may need to prepare for a longer wait to get to the closing table as buyers become more cautious in their purchasing decisions.