Existing home sales in the United States surged by 5.1% from the previous month to an annualized rate of 4.35 million in December of 2025, firmly above market expectations of the sharpest increase in nearly two years to the highest level in nearly three years. The drop drove inventory to plunge by 18.1% from the previous month to 1,180,000, equivalent to 3.3 months of supply at the current sales rate. The median price of existing home sales eased further to $405,400 in the period, a 0.4% increase from the previous year. According to NAR Chief Economist Lawrence Yun, “2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales. However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. The gains were broad-based, with all four major regions improving from the prior month.”
