Home Sales: A Glimpse of Hope in 2025

In the last month of 2025, the housing market showed some unexpected strength. Sales of existing homes picked up speed, reaching a rate of 4. 35 million units when adjusted for seasonal changes. This was a notable jump from November and even better than what experts had predicted. Looking back at the entire year, the total number of homes sold remained steady compared to 2024. December's sales were the highest in nearly three years, with every region seeing a boost from the previous month. However, the South and West lagged behind when compared to the same time last year. These sales numbers reflect deals that were likely made a couple of months earlier when mortgage rates were stable around 6. 2% to 6. 3%. This was an improvement from the higher rates seen earlier in the year, but still a challenge for many buyers.The year 2025 was tough for those looking to buy a home, with prices at record highs and sales at record lows. But towards the end of the year, things started to look up. Mortgage rates dropped, and the rapid increase in home prices began to slow down. One big issue was the number of homes available for sale. At the end of December, there were fewer homes on the market compared to November, but more than the same time last year. With more homes being sold, the supply became even tighter, which kept prices from dropping too much. The average price of a home sold in December was just over $405, 000, a slight increase from the year before. This marked the 30th month in a row of annual price gains, but the increase was smaller than the month before. Homeowners seem to be in no rush to sell, taking their time to decide when to list their homes. More inventory is expected to hit the market starting in February, as is typical in past years.