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Housing Market Gains Steam As Existing‑Home Sales Jump

Jan 14, 2026
Housing Market Gains Steam
Existing‑home sales surged in December to the fastest pace in nearly three years, driven by easing mortgage rates and broad regional gains, despite tight inventory

Existing‑home sales surged in December to the fastest pace in nearly three years, driven by easing mortgage rates and broad regional gains, despite tight inventory

Existing‑home sales nationwide rebounded in December, rising 5.1% month-over-month to a seasonally adjusted annual rate of 4.35 million units, according to the latest Existing‑Home Sales Report from the National Association of Realtors (NAR). The increase marks the third consecutive monthly gain and the strongest pace in nearly three years, reflecting improving market conditions as mortgage rates eased late in 2025.

Across the four major U.S. regions, sales climbed month‑over‑month, including 6.9% in the South and 6.6% in the West. Other regions also saw gains, though year‑over‑year trends varied: sales rose in the South, were flat in the Midwest and West, and declined slightly in the Northeast.

"2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun. "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."

Despite the uptick in sales, housing inventory remains constrained. Total inventory stood at 1.18 million units, down 18.1% from November, but up slightly from the prior year. This equates to roughly 3.3 months of supply, reflecting limited availability relative to buyer demand.

"Inventory levels remain tight,” Yun said. "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."
Home prices have continued to trend upward, with the median existing‑home price at $405,400 in December — a 0.4% increase from December 2024 and the 30th consecutive month of annual price gains. Single‑family homes and condominiums both posted month‑over‑month sales increases, though condo sales were slightly lower than a year ago.

Hector Amendola, president of Panorama Mortgage Group, added: “The ‘right’ time to buy is when a buyer can afford the projected payment. Beginning to build wealth is so important, and timing the market is virtually impossible. Existing-home sales are improving 一 one of multiple signs for cautious optimism overall.”

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