A home with a “Sold” sign from a real estate company in North Patchogue, New York.
Steve Pfost | Newsday | Getty Images
Sales of previously owned homes in December rose to a seasonally-adjusted, annualized rate of 4.35 million units, a 5.1% increase from November, according to the National Association of Realtors. That was higher than analysts’ expectations for a gain of 2%. Sales were 1.4% higher than a year earlier.
For the full year, there were 4.06 million existing home sales, unchanged from 2024.
After adjusting for seasonal factors, December sales were the strongest in nearly three years. Sales increased in all regions month-over-month and were higher annually in the Northeast and Midwest, but lower in the South and West.
This count is based on closings, so sales contracts likely signed in October and November, when mortgage rates weren’t moving much. The average rate on the 30-year fixed loan hovered between 6.2% and 6.3% during that time. That rate, however, was lower than it was last spring and summer, when it was closer to 7%.
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said Lawrence Yun, chief economist for The Realtors, in a release. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth.”
Inventory was the big headline of the monthly report. There were 1.18 million units available for sale at the end of December, down 18% from November, although 3.5% higher year-over-year.
With stronger sales, that dropped the supply to just 3.3 months, which is considered quite lean. Low supply kept prices in positive territory, although just barely.
The median price of a home sold in December was $405,400, up 0.4% annually and the 30th straight month of annual gains. The increase, however, was smaller than the 1.2% gain in November.
“With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February,” Yun added.
