U.S. existing-home sales rebounded sharply in December 2025, posting their strongest seasonally adjusted pace in nearly three years as easing mortgage rates and slower price growth began to thaw a market that has been frozen by affordability pressures.
Sales rose 5.1% from November to a seasonally adjusted annual rate of 4.35 million, according to data released by the National Association of Realtors. The gain marked a 1.4% increase from a year earlier and capped a late-year improvement following a historically weak housing cycle.
The December advance was broad-based, with sales increasing in all four major U.S. regions on a month-over-month basis. Year over year, activity rose in the South, held steady in the Midwest and West, and declined in the Northeast.
Lawrence Yun
“2025 was another difficult year for homebuyers, defined by record-high prices and exceptionally low transaction volumes,” NAR Chief Economist Lawrence Yun said in a statement. “Conditions began to improve in the fourth quarter as mortgage rates pulled back and price growth moderated. December sales were the strongest since early 2023.”
Despite the pickup in demand, supply constraints continue to define the market. Total housing inventory fell to 1.18 million units in December, down 18.1% from November but 3.5% higher than a year earlier. That represents a 3.3-month supply at the current sales pace, down from 4.2 months in November.
“Inventory remains tight,” Yun said. “Many homeowners are reluctant to move, limiting listings. As in prior years, we expect more homes to come on the market beginning in February.”
Prices continued to rise nationally, though gains were modest. The median existing-home price across all housing types edged up 0.4% from a year earlier to $405,400, marking the 30th consecutive month of annual price increases.
Single-family home sales climbed 5.1% from November to an annual rate of 3.95 million and were up 1.8% from a year earlier. The median single-family price rose 0.2% to $409,500.
Condominium and co-op sales increased 5.3% on the month to an annual pace of 400,000 but were down 2.4% from December 2024. Median prices in the segment rose 1.5% to $364,400.
Regionally, the South led the recovery, with sales jumping 6.9% from November to an annual rate of 2.02 million, up 3.6% year over year. Prices in the region slipped 0.3% to $360,200.
In the West, sales rose 6.6% to an annual pace of 810,000, unchanged from a year earlier, while median prices fell 1.4% to $605,600. Midwest sales increased 2.0% to 1 million, flat year over year, with prices climbing 3.1% to $306,000. The Northeast saw a 2.0% monthly gain to 520,000, though sales were down 1.9% from a year earlier; median prices rose 3.7% to $496,700.
Mortgage rates provided incremental relief. The average rate on a 30-year fixed mortgage fell to 6.19% in December, according to Freddie Mac, down from 6.24% in November and 6.72% a year earlier.
While affordability challenges persist, the late-year rebound suggests housing activity may be stabilizing as borrowing costs retreat and buyers gradually re-enter the market.
