Existing-home sales rose 5.1% in December, marking the strongest seasonally adjusted pace in nearly three years, according to the National Association of REALTORS®.
Sales increased month over month in every region, with the South posting the largest gain, while inventory tightened sharply heading into year-end.
Home prices continued to climb nationally, extending a nearly 2½-year streak of annual price increases, even as mortgage rates edged lower.
Sales of existing homes rebounded in December, offering a late-year boost to a housing market that had struggled under the weight of high prices and borrowing costs for much of 2025.
The National Association of Realtors reported that existing-home sales increased 5.1% from November to a seasonally adjusted annual rate of 4.35 million. Sales were also 1.4% higher than a year earlier, signaling modest improvement after a prolonged slowdown
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said Lawrence Yun, NAR’s chief economist.
“However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth.”
Strongest in three years
Yun noted that December’s results were particularly encouraging. After seasonal adjustments, home sales were the strongest in nearly three years, with gains spread across all four major regions of the country.
Inventory remains a key constraint, however. Total housing inventory fell to 1.18 million units in December, down 18.1% from November, though still 3.5% higher than a year earlier. At the current sales pace, that represents a 3.3-month supply of homes, down from 4.2 months in November.
“Inventory levels remain tight,” Yun said. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes.” He added that, as in prior years, more listings are expected to appear beginning in February.
Prices still going up
Prices continued to rise nationally, underscoring the ongoing imbalance between supply and demand. The median existing-home price for all housing types reached $405,400 in December, up 0.4% from a year earlier. That marked the 30th consecutive month of year-over-year price increases.
Single-family home sales climbed 5.1% from November to an annual rate of 3.95 million and were 1.8% higher than a year earlier. The median price for a single-family home was $409,500, up 0.2% year over year.
Condominium and co-op sales rose 5.3% month over month to an annual rate of 400,000, but were down 2.4% from December 2024. The median price in that segment increased 1.5% to $364,400.
While affordability challenges remain, the combination of easing mortgage rates and early signs of increased listings could shape a more active housing market as 2026 begins.