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Existing-home sales increased 5.1 percent month over month in December. However, it wasn’t enough to push 2025 above the previous year’s level.

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Existing-home sales ended 2025 on an uptick, according to the National Association of Realtors’ December market report. However, it wasn’t enough to push sales above 2024 levels.

Existing-home sales increased 5.1 percent month over month to a seasonally adjusted annual rate of 4.35 million. Sales also increased on an annual level (+1.4 percent), with the South logging year-over-year gains, the Midwest and West remaining flat, and the Northeast seeing a slight decline.

Lawrence Yun

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

After significant gains earlier in the year, inventory levels contracted in December, declining 18.1 percent to 1.18 million units — or a 3.3-month supply at the current sales pace.

“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.”

Realtor.com Chief Economist Danielle Hale said December’s sales bump wasn’t enough to gain an edge on 2024 sales, with the year just falling short by a razor’s edge.

Danielle Hale | Credit: Realtor.com

“In 2025, 4.061M homes were sold compared to a 2024 total of 4.062M,” she said in an emailed statement. “This means that 2025 is now the lowest annual total since 1995, but by a very small margin: a difference of 1,000 home sales.”

Still, Hale has a cautiously optimistic outlook for 2026, as mortgage rates and median home price growth (+0.4 percent) stay on the lower end of the spectrum.

“December homebuyers, who would likely have gone under contract in October and November, benefited from rates near their lowest levels in a year, and fortunately, mortgage rates have not climbed since,” she said. “Mortgage rates have no shortage of potential drivers, from recently announced MBS-buying programs to macro factors like employment and inflation.”

“So far these factors have largely offset, keeping rates steady to slightly lower[. That’s] good news for homebuyers, and a trend I expect to continue in 2026,” she added. “This should help put a firmer floor under sales in the year ahead.”

Email Marian McPherson

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