A home in North Patchogue, New York, has a “sold” sign posted by a real estate company.
Steve Forst | Newsday | Getty Images
Existing home sales rose 5.1% from November to a seasonally adjusted annual rate of 4.35 million units in December, according to the National Association of Realtors. This was higher than the 2% increase expected by analysts. Sales increased by 1.4% compared to the same period last year.
The number of existing home sales for the year was 4.06 million, unchanged from 2024.
After adjusting for seasonal factors, December sales were the strongest in about three years. Sales increased month-over-month in all regions, with year-over-year increases in the Northeast and Midwest, but declines in the South and West.
This number is based on closings, so it’s likely that sales contracts were signed in October and November, when mortgage rates didn’t move much. The average interest rate on a 30-year fixed loan during this period hovered between 6.2% and 6.3%. But the rate was lower than last spring and summer, when it was nearly 7%.
“2025 was another challenging year for homebuyers, marked by record home prices and historically low home sales,” Lawrence Yun, chief economist at The Realtors, said in a release. “However, the situation started to improve in the fourth quarter, with mortgage rates falling and house price growth slowing.”
Inventories were the big headline in the monthly report. As of the end of December, the number of available homes for sale was 1.18 million, an increase of 3.5% compared to the same month last year, but a decrease of 18% compared to November.
Due to strong sales, the supply was reduced to just 3.3 months, which is considered quite low. The lack of supply has kept prices in positive territory, if only just barely.
The median price of homes sold in December was $405,400, an annual increase of 0.4% and the 30th consecutive month of annual increases. However, the rate of increase was smaller than the 1.2% rise in November.
“With fewer sellers willing to move, homeowners are taking their time deciding when to list or delist their homes. As in past years, we expect more inventory to hit the market starting in February,” Yun added.
