Economists warn that unless December sees improved sales, 2025 could be a down year for home sales.
New-build properties were left vacant during the recession due to a combination of overbuilding and the public’s inability to afford homes(Image: Getty)
Sales of previously occupied homes in the U.S. rose in November but still lagged behind sales from November of last year, even as average long-term mortgage rates held their low point for the year.
It was the first time since May when home sales from last year outpaced this year.
Economists warn that unless December sees improved sales, 2025 could be a down year for home sales.
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“It’s possible that 2025, unless December figures really improve, we may be technically slightly down from one year ago,” Lawrence Yun, National Association of Realtors’ chief economist, told the Associated Press.
NAR said Friday that existing home sales rose by .5% last month from October while sales fell 1% when compared to November 2024.
Yunn said one factor hampering home sales is declining demand for condos. Condo sales are down 6% this year, the economist said.
Meanwhile home prices are continuing to climb despite the slower sales. Nationally, median sales prices increased by 1.2% in November from last year to $409,200.
It’s an all-time high for any November to date since 1999, according to the Associated Press.
Home prices have steadily risen for 29 months in a row. Last year saw the sales of previously occupied homes in the U.S. drop to their lowest level in almost 30 years.
But sales did get a boost this fall when the average rate for 30-year mortgages declined in October to their lowest in more than a year at 6.17%.
Uncertainty over the job market and the economy could also be keeping some potential buyers from making the plunge.
NAR released an annual survey of homebuyers that showed first-time buyers accounted for only 21% of home purchases, an all-time low, between July 2024 and June 2025.
That survey also showed that the average age of homebuyers rose to a record high of 40.
Yun forecasts that existing home sales in the U.S. will see a big jump next year of 14%. Other housing economists expect a more modest bump between 1.7% and 9%.