Home sales notched their third straight month of gains in November, though 2025 sales are likely to finish the year at a 30-year low.
Existing home sales rose 0.5% from October to a seasonally adjusted annual rate of 4.13 million, according to National Association of Realtors data released on Friday. Lower mortgage rates were likely a boost: Homes sold in November typically went under contract during September or October, around when mortgage rates began holding steady near year-to-date lows of 6.2%.
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“The low mortgage rate conditions of this autumn compared to the early part of the year is clearly helping some of the affordability conditions,” said NAR chief economist Lawrence Yun.
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Although home sales have improved in recent months, the housing market is still in a deep slump stemming from high prices, elevated mortgage rates, and consumer unease. Home sales for the year are on track to be the lowest since 1995, and November’s improvement was below the 1.2% gain analysts had been expecting.
Sales rose month over month in the Northeast and South, while they were flat in the West and dropped in the Midwest. Compared with a year earlier, sales are down 1%.
The winter months typically bring a seasonal slowdown in sales activity. Housing inventory dropped 5.9% to 1.43 million units last month compared to October, but it’s still a 7.5% improvement from November 2024.
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Next year, the health of the labor market and trends in inflation will be key influences on the market, Selma Hepp, chief economist at Cotality, said in a statement.
“A rebound in the housing market hinges on a solid labor market, income growth, and economic resilience amid the continued affordability crisis, elevated mortgage rates, and consumer discontent,” Hepp said.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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