What did existing-home sales look like in December?

Sales of existing-homes increased in all four regions across the nation in December compared to the previous month, a report released today by the National Association of REALTORS ® (NAR) said.

Existing home sales, which the NAR defines as completed transactions for properties that include single-family homes, townhomes, condominiums and co-ops, increased as much as 5.1% from November.

Compared to the previous month, the South noticed the greatest increase of existing-home sales in December, up 6.9% from last month, as well as up 3.6% from the year before.

Total homes for sale at the end of December were 1.18 million units, down 18.1% from November and up 3.5% from December 2024. With more options on the market, potential buyers have a better chance to search for their dream home than they did last year.

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

Which regions showed changes in pending home sales?

All four regions the NAR tracks in the U.S. showed increases in sales of existing homes in December compared to the previous month, the NAR said.

With the increase in sales, inventory numbers have had trouble keeping up.

"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."

Winter typically sees a drop in existing-home sales prices. On top of that, mortgage rates have seen a steady decline since May, which has improved conditions for potential buyers joining the housing market.

Did mortgage rates show any change?

According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.16% as of Jan. 8. That’s up from 6.15% one week before but down significantly from 6.93% one year ago.

A continued reduction in mortgage interest rates will likely be a welcome sign to prospective homebuyers. A decrease in mortgage rates could also signal a continuing thaw in the housing market as we enter the new year.

Are you ready to start seeing the benefits of homeownership? Apply for a mortgage pre-approval and begin your journey toward your dream home with Rate! A pre-approval shows sellers and real estate agents that you’re serious and gives you an idea of how much of a mortgage you’re likely to get approved for.

*National average rates from Freddie Mac as of Jan. 8, 2026, are not advertised rates from Rate.

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