“Home sales momentum is building,” says NAR Chief Economist Lawrence Yun. “More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago and consumers get used to a new normal of mortgage rates between 6% and 7%.”

Also, more homeowners are feeling richer as home prices continue to rise, jumping 4.7% year over year in November, according to NAR data. The median existing-home sales price settled in at $406,100, up from $387,800 a year earlier.

Leading economists recently offered their 2025 housing market forecasts, as well as the markets expected to see the biggest sales increases, during NAR’s Real Estate Forecast Summit.

In some markets, buyer competition remains strong, with listings in those areas receiving an average of 2.1 offers and 18% of properties selling above list price in November, NAR reports. Twenty-two percent of buyers waived an inspection contingency and 21% waived an appraisal contingency to make their offers more competitive, according to the REALTORS® Confidence Index, a survey of about 1,700 real estate professionals.

Home buyers are finding more inventory options, with listings nationwide up nearly 18% compared to a year ago. With greater options, the median days on the market for sold properties in November was 32 days, up from a brisker pace of 25 days a year earlier. Still, 53% of properties sold in less than a month, NAR reports.

Who’s Buying?

More current homeowners may be tempted to tap into their growing equity to purchase a new property. “Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years to look for homes better suited to their changing life circumstances,” Yun says.

Also, cash buyers continue to flood the housing market at historical high levels. Twenty-five percent of buyers used cash to fund their home purchase in November, NAR’s report shows. Individual investors or second-home buyers comprised 13% of cash sales.

More first-time home buyers emerged in November despite being particularly hard-hit by the rising costs of homeownership. First-time buyers accounted for 30% of home sales, up from 27% the previous month. Even so, that number is low: Historically, first-time buyers comprise 40% of the market.

Regional Snapshot

Here’s a closer look at how existing-home sales fared across the country in November, according to NAR’s latest housing report:

• Northeast: Sales increased 8.5% month over month, reaching an annual rate of 510,000. Sales are up about 6% from a year ago. Median price: $475,500, up about 10% from a year ago.
• Midwest: Sales rose 5.3% to an annual rate of 1 million. Sales were up 5.3% compared to the previous year. Median price: $302,000, up 7.3% from November 2023
• South: Sales jumped 5.6% month over month to an annual rate of 1.87 million. Sales were up 3.3% compared to a year earlier. Median price: $361,300, up 2.8% from a year ago.
• West: Sales were unchanged compared to the previous month at an annual rate of 770,000. However, sales were up nearly 15% compared to a year earlier. Median price: $628,200, up 4% from a year ago.

2025 Housing Outlook

Optimism is brewing about an even bigger housing turnaround in the new year. Home builders are notably more upbeat, with their future sales expectations climbing near a three-year high, according to the latest National Association of Home Builders/Wells Fargo Housing Market builder sentiment index.

The construction of single-family homes posted a 7% year-over-year increase in November, the Commerce Department reported Wednesday. Builders also are courting home buyers in a bigger way: 31% of builders cut their home prices in November, with the average price reduction being 5%. Sixty percent of home builders reported using sales incentives, like buying down mortgage rates, the survey shows.

“While builders are expressing concerns that high interest rates, elevated construction costs and a lack of buildable lots continue to act as headwinds, they are also anticipating future regulatory relief in the aftermath of the election,” says Carl Harris, chairman of the NAHB.

Real estate pros also expect market conditions to improve in the new year. For 2025, NAR is forecasting stronger home sales, moderating prices, more listings in both the new- and existing-home markets and stabilizing mortgage rates that settle in the low 6% range.