Existing-Home Sales Increase 5.1% in December

(Illustration courtesy of National Association of Realtors)

Existing-home sales increased by 5.1% in December, according to the National Association of Realtors Existing-Home Sales report.

Month-over-month sales increased in all regions, the report noted.

Year-over-year sales increased in the South, remained flat in the Midwest and West and decreased in the Northeast.

“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” NAR Chief Economist Lawrence Yun said. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month.”

Yun noted housing inventory levels remain tight. “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.”

The median existing-home price for all housing types rose 0.4% from one year ago to $405,400, the thirtieth consecutive month of year-over-year price increases, the report said.

Freddie Mac, McLean, Va., reported the average 30-year fixed-rate mortgage dipped to 6.19% in December, down from 6.24% in November and 6.72% one year ago.

In a written analysis, Wells Fargo Economics said it does not expect a significant decline in mortgage rates. “This means home sales, though on the mend, are not likely to show a lot of energy in the year ahead,” Wells Fargo Economics said.

Bankrate Housing Market Analyst Jeff Ostrowski noted affordability remains a challenge in the housing market, especially for first-time buyers. “A recent dip in mortgage rates might help some buyers get into the market, but home prices remain stuck at record highs,” he said.