Home Prices Are Down So Home Sales Are Up

Good news — home sales rose again in November 2025! But don’t bust out the party hats just yet: the reason behind the increase isn’t as straightforward as it sounds. Buyers are still facing a supply squeeze that makes finding the right home frustrating. Let’s break this down — and, more importantly, explain what it means for you.

So What Happened...
According to the latest report from the National Association of REALTORS®, U.S. existing home sales increased by about 0.5% in November 2025 compared with October. That extends a modest three-month rally in sales.

However, at the same time, the number of unsold homes on the market fell roughly 6%, putting pressure back on inventory. That means even though more homes changed hands, there are fewer houses for sale — a combination that can feel contradictory.

Why It Matters (in Plain Language):
Imagine a highway where traffic speeds up slightly — but lanes suddenly narrow. That’s similar to what’s happening in the housing market right now:

• 🛣 Home sales increased: More deals closed than the month before — often because mortgage rates eased slightly this fall, nudging some buyers into action.

• 🚧 Inventory tightened: There just aren’t as many homes available for sale, making competition tighter and choices more limited.

For everyday homeowners and buyers, this mix matters because it affects how fast homes sell, how much you pay, and how much options you have to pick from.

For Buyers:

• Less inventory often means homes sell quickly and you still may need to act fast when something good hits the market.

• Slight sales bumps can reflect buyers who were sitting on the sidelines now jumping in — but not many new listings are coming to market.

For Sellers:

• Less supply can be your friend — fewer competitors often means more eyeballs on your listing.

• But be careful: buyers aren’t willing to overpay just because inventory is low. They’re coming with inspections and price expectations grounded in the current market.

Affordability Still Matters:
Even with slightly better sales numbers, housing affordability continues to be a challenge. Mortgage rates have eased from their recent highs, but they’re still above the ultra-low levels seen earlier in the decade. That means a larger portion of your paycheck goes to monthly payments than in the “good old days” of rock-bottom rates.

Takeaway Tip:
If you’re thinking about buying or selling in early 2026, now’s the time to have a plan with your agent. Track inventory closely, get pre-approved if you’re buying, and price your home realistically if you’re selling.

Bottom Line:
November’s bump in sales shows the market isn’t frozen — buyers are active. But the lack of inventory means the housing market still leans toward the seller in many areas. That situation could shift in 2026, but for now it’s a fine balance of cautious buyers and careful sellers.