US Residential Real Estate Market Report - November 2025

Home Sellers Pull Back as Housing Supply Posts Sharpest Decline Since 2023

Home sellers are stepping back from the market as buyer demand remains sluggish, pushing housing supply to its largest monthly decline in more than a year.

Active listings fell 1.4% month over month in November, marking the steepest seasonally adjusted drop since June 2023. At the same time, pending home sales recorded their biggest decline in nearly a year, and homes that did sell spent more time on the market than at any point in November over the past decade.

One bright spot for buyers: sellers are increasingly willing to negotiate. The typical home sold for 1.6% below its final list price, the largest November discount seen in six years.

For-Sale Housing Supply Has Declined for Six Straight Months

Housing inventory has now fallen for half a year, reflecting growing hesitation among homeowners considering a sale. While supply peaked earlier in the year, recent months have seen a steady pullback as fewer sellers list their homes and some existing listings are removed altogether.

New listings dropped 2.2% from October, reaching their lowest seasonally adjusted level since April 2024.

This retreat is closely tied to buyer behavior. Elevated mortgage rates and broader economic uncertainty have made many buyers cautious, reducing competition and limiting sellers' ability to command premium prices. Faced with slower activity and weaker offers, some homeowners are choosing to wait on the sidelines.

Sellers Are Cutting Prices to Attract Buyers

Pricing pressure is becoming more evident across the market. The typical home sold in November closed at 1.6% below asking, signaling a clear shift in negotiating power toward buyers.

While the median U.S. home sale price edged up 0.7% year over year to $433,222, that marked one of the slowest rates of price growth since mid-2023. Price momentum is now hovering close to flat, underscoring how affordability constraints continue to weigh on demand.

Many sellers are discovering that realistic pricing is essential to generate interest. Homes that adjust prices strategically are more likely to attract multiple offers, while those priced aggressively often linger without activity.

Pending Sales Drop Sharply as Homes Take Longer to Sell

Pending home sales declined 2.5% month over month in November, the largest decrease since late 2024. High housing costs and economic uncertainty continue to deter buyers from making commitments.

Closed existing-home sales were essentially unchanged from the prior month and only marginally higher than a year earlier, running at an annualized pace of 4.27 million transactions. Sales for the year are expected to finish roughly in line with 2024 levels, which marked the weakest year for home sales since the mid-1990s.

Homes that went under contract in November spent a median of 53 days on the market, seven days longer than a year earlier and the slowest November pace since 2016.

Buyers Hold the Upper Hand

Although both buyers and sellers have stepped back from the market, buyer activity has declined more sharply over the past two years. As a result, sellers now significantly outnumber buyers, giving those still shopping greater leverage.

Many buyers are successfully negotiating lower prices, closing credits, or other concessions. Longer marketing times reflect a growing sense among buyers that there is little urgency to act, especially with the expectation that mortgage rates may ease further.

While borrowing costs have dipped slightly in recent months, they remain well above the historically low levels seen earlier in the decade, keeping affordability stretched for many households.

November 2025 Housing Market Snapshot: United States

Metro-Level Trends Show Wide Variation

Housing conditions varied significantly across major U.S. metropolitan areas:

• Price gains were strongest in Midwest metros such as Cleveland, Detroit, and Pittsburgh, while prices declined most in parts of Florida, California, and Texas.

• Pending sales increased in select Sun Belt markets but fell sharply in several West Coast metros.

• New listings rose modestly in a handful of Northeast and Midwest cities, while declining steeply in parts of Florida and Texas.

• Homes sold above list price remained most common in high-cost coastal markets, while Southeast Florida recorded some of the lowest shares.

• Days on market increased most in several Sun Belt metros, signaling slowing demand, though a few markets saw faster sales than a year earlier.