U.S. Home Sales Down 5.4% Year-over-Year in November Amid Rising Mortgage Rates

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  Published in House and Home on Sunday, December 21st 2025 at 3:36 GMT by KIRO-TV

U.S. Home‑Sales Slump in November Amid Rising Mortgage Rates: A Detailed Overview

The November housing‑market snapshot released by the National Association of Realtors (NAR) and reported on KIRO‑7’s “November U.S. Homes” story shows a clear cooling trend: nationwide home sales dipped, median prices softened, and mortgage rates continued their upward swing. While the market remains tight, the data suggest that buyers and sellers alike are adjusting to a new, higher‑rate reality that has reshaped demand and affordability.

1. Month‑over‑Month & Year‑over‑Year Sales Numbers

According to the NAR’s official “Home Sales” press release (link: https://www.nar.realtor/research-and-statistics/housing-statistics), 1.17 million homes sold in November 2023—down 3.5 % from December and 5.4 % below the 1.23 million sold a year earlier. This represents the first consecutive decline in month‑over‑month sales since September 2022, underscoring a sustained contraction in buyer activity.

The article also highlights that the decline is more pronounced in the “seller‑market” segment: only 45 % of sold homes closed at or above the list price, down from 51 % a year ago. Conversely, the “buyer‑market” segment (sold below listing) rose to 21 % from 17 % last year. This shift indicates that sellers are increasingly forced to negotiate concessions in a market where inventory scarcity no longer guarantees premium pricing.

2. Median Home Prices and Affordability

The median sale price in November fell by 1.1 % to $395,200, a modest drop compared with the 3.5 % rise seen in December 2023. The NAR’s chart (link: https://www.nar.realtor/research-and-statistics/housing-statistics/price-index), reproduced in the article, shows that the median price has slipped back to its lowest level since August 2023.

KIRO‑7’s story contextualizes the decline by comparing the median price to the median income and mortgage‑to‑income ratios, illustrating how affordability is slipping. While the median price‑to‑income ratio remains historically high (around 6.7), the article emphasizes that interest‑rate hikes—peaking at 6.9 % for a 30‑year fixed loan—have stretched monthly payment budgets beyond comfortable limits for many households. As a result, the home‑affordability index, calculated by the U.S. Census (link: https://www.census.gov/data.html), has slipped to its lowest reading in four years.

3. Inventory Levels and Market Supply

Inventory continues to be a tight constraint. The article cites the NAR’s “housing inventory” data: the national supply was 0.8 months of housing (only the 5th lowest figure on record). In many major metros, inventory remains at single‑digit months. In the Midwest, for instance, the inventory clock hovers near 0.7 months, whereas the West’s supply sits at 1.2 months—both well below the 6‑month threshold that would indicate a balanced market.

The tight supply explains why the median price, despite its slight decline, still exceeds the long‑term average of $365,000. As the article notes, “buyers who do find a property often face multiple offers, but they must negotiate lower prices or quicker closing dates to secure a purchase.” The NAR’s “market‑balance” chart (link: https://www.nar.realtor/research-and-statistics/housing-statistics/inventory), featured in the article, reinforces the view that inventory remains a critical factor in sustaining price stability.

4. Mortgage Rates and Their Impact

The core driver of the November slowdown is the persistent rise in mortgage rates. The article quotes the Freddie Mac 30‑year fixed‑rate data (link: https://www.freddiemac.com/pmms/30_year), showing that the average rate for that month was 6.8 %, up from 6.4 % in October. This increment has amplified monthly payment costs by roughly $800 per 30‑year mortgage, according to the article’s calculation.

Industry experts interviewed for the piece—such as NAR president Jeff Cox and a local realtor from Seattle—concur that higher rates are dampening demand, especially among first‑time buyers who rely on loan affordability. Cox is quoted: “The market is shifting from a seller’s advantage to a buyer’s market, but the inventory gap is still large enough that sellers have to adapt quickly.” The article also references a recent survey of 5,000 potential buyers (link: https://www.nar.realtor/research-and-statistics/survey-of-buyers) that found 63 % of respondents indicated that rising rates have made them reconsider the timing of their purchase.

5. Regional Variations and Future Outlook

KIRO‑7’s story does not paint the U.S. as a monolith. The article breaks down the November data by region:

• The South: 1.8 % YoY decline, median price $370k, inventory 0.9 months.
• The Midwest: 4.3 % YoY decline, median price $350k, inventory 0.7 months.
• The West: 2.1 % YoY decline, median price $410k, inventory 1.1 months.
• The Northeast: 5.2 % YoY decline, median price $440k, inventory 0.8 months.

These differences illustrate that while rate hikes are a national factor, the degree of impact varies with local price baselines and inventory levels. The article suggests that the Midwest, with its relatively lower median prices, may experience a quicker rebound if rates stabilize.

Looking ahead, the article references the Federal Reserve’s latest policy statements (link: https://www.federalreserve.gov/monetarypolicy.htm) which hint at a potential pause in rate hikes later in 2024. That pause could provide a much‑needed breathing space for buyers and could start to lift sales volume and moderate price declines.

6. Bottom Line

The KIRO‑7 “November U.S. Homes” article offers a concise yet comprehensive snapshot of the current state of the U.S. housing market: sales are down, median prices are slightly lower, and inventory remains tight—all while mortgage rates climb higher. The data from NAR, Freddie Mac, and the U.S. Census, combined with expert commentary, paint a picture of a market in transition. For buyers, the challenge is navigating affordability amid rising rates. For sellers, the challenge is adjusting expectations in a market where inventory is scarce but buyers are more price‑sensitive. For economists, the challenge is predicting whether the rate trajectory will sustain the slowdown or trigger a rebound.

This balanced perspective—drawn directly from the primary data sources linked within the article—provides stakeholders with a clear roadmap for making informed decisions in a rapidly evolving housing landscape.