November 2025 Housing Data Shows Cooling Prices and Returning Buyers

With the full release of the November 2025 housing data, the metrics point to a market that’s slowly regaining balance. Price growth is cooling, buyers are testing the waters again, and contract activity is building into year-end. The most encouraging signal for affordability came just ahead of November, when the Federal Housing Finance Agency reported average home prices were up only 1.7% year over year in October. For reference, this marks the smallest annual gain since March 2012 after pandemic-era spikes that often ran near 20%. That slower appreciation matters because it can reduce future inflationary pressures and suggests buyers may face fewer “runaway price” dynamics in the months ahead.

Similarly, November’s resale market followed that theme. The market showed sales nudging higher and price growth staying slim, while shoppers gained a few more choices than last year. That said, the overall housing supply remains tight. Meanwhile, pending home sales (contracts signed) jumped, signaling a healthier pipeline of closings into winter.

On the new construction front, the figures presented a mixed bag. On one hand, builder sentiment remains negative. On the other, incentives and selective price cuts are helping move inventory. Put together, late-2025 tells the story of a gradual shift toward a more buyer-manageable environment built on easing rates, slower price growth, and careful deal-making.

Existing-Home Sales Rise While Housing Inventory Stays Constrained

The November 2025 housing data showed that existing-home sales increased 0.5% month over month to a seasonally adjusted annual rate of 4.13 million. However, sales dropped 1.0% year over year. That modest gain matches what many buyers felt on the ground; there’s renewed activity, but the market still isn’t “wide open.”

The median existing-home sales price came in at $409,200, up 1.2% from a year ago. This is a relatively modest increase given the volatility of the last few years. For affordability, slightly higher sales and slower price growth suggest demand is returning without reigniting a price surge.

The bigger constraint is supply. Total inventory stood at 1.43 million units, down 5.9% from October. Equal to a 4.2-month supply nationally, this falls short of the roughly 6-month supply typical of a balanced market. On the plus side, housing inventory rose 7.5% higher than November 2024, meaning more options year-over-year.

In terms of the purchasing mix, first-time buyers accounted for 30% of sales. Notably, the long-term norm for first-time buyers is closer to 40%. Secondly, cash sales represented 27%, and investors/second-home buyers took the number three spot at 18%. This points to continued competition in certain price tiers.

Pending Home Sales Signal a Stronger Real Estate Closing Pipeline

If existing-home sales describe what already closed, pending home sales show where the momentum is headed next. The November 2025 housing data reflected a 3.3% month-over-month increase in pending home sales. This is a 2.6% year-over-year increase. All four regions grew across the United States.

The figures suggest demand is not confined to one pocket of the country. Moreover, prospective buyers transitioned from “house hunting” to signing contracts. It also lines up with the broader affordability story of slower price growth, slightly lower mortgage rates, and somewhat better selection than last year.

Survey-based expectations improved as well. 22% of REALTORS® reported expecting an increase in buyer traffic over the next three months (up from 17% in October). Also, 18% expected an increase in seller traffic (up from 16%). While that doesn’t guarantee a surge in listings, it suggests more real estate activity as the year turns. This is especially true if buyers perceive that the “worst” affordability shock is behind them.

The key takeaway for consumers is that the pace of signed contracts can translate into steadier closings through winter and into early 2026. For anyone planning a move, this is a reminder to treat timelines seriously.

November 2025 Housing Data Points to Gradual Normalization

Overall, the November 2025 housing data support a clear theme. The analytics show that the market is progressing toward balance, albeit slowly. Price growth cooled, mortgage rates came down since last year, and pending home sales suggest a stronger closing pipeline heading into winter.

At the same time, tight inventory and below-normal first-time buyer participation show that affordability challenges haven’t disappeared; they’ve simply eased at the margins. For buyers and sellers alike, the smartest approach in this environment is preparation.

To set up a real estate closing in 2026, contact the title insurance and escrow specialists at Plymouth Title Guaranty Corporation.