Existing-home sales rose 0.5% in November but the market still feels stuck

Existing-home sales finally moved in the right direction in November, but you can feel how tentative the progress is. A 0.5% gain is enough to break the worst of the slide, not enough to make the market feel healthy. If you are trying to buy or sell, the data tells you that conditions are improving at the margins while the broader housing machine still grinds along in low gear.

What a 0.5% gain really means for you

You might see that existing-home sales rose 0.5% in November and assume the tide has turned, but the scale of the move matters. The National Association of Realtors reported that, on a seasonally adjusted basis, sales reached an annual rate of 4.13 m, which is still historically subdued. A market that once routinely cleared more than five million existing homes a year is now inching forward in tiny increments, so you should read this as stabilization, not a boom.

The 0.5% Month Over Month uptick is also uneven beneath the headline. Some regions are seeing modestly better activity, while others remain stuck with thin inventory and hesitant buyers. For you as a participant in this market, that means local conditions will matter more than the national average, and a small national gain can coexist with a neighborhood that still feels frozen in place.

Sales are rising, but the slump is not over

Even with three consecutive monthly increases, the housing market still looks like it is climbing out of a crater rather than sprinting ahead. Existing U.S. home sales are described as rising 0.5% in November to a 4.13M pace, yet Sales are still lower than a year earlier, which tells you demand has not fully recovered. You are watching a market that is less bad, not one that has clearly turned the corner.

That nuance is crucial if you are trying to time a purchase or decide whether to list. The data shows that Existing transactions remain constrained by affordability and supply, even as the worst of the pullback appears to be behind you. In practical terms, you should expect a slow grind rather than a snapback, with pockets of strength where pricing and local job markets line up and lingering weakness where they do not.

Mortgage rates near 6.2% keep pressure on affordability

The single biggest reason the market still feels stuck is the cost of borrowing. Mortgage rates that are near 6.2% on a 30-year fixed loan are a far cry from the ultra-cheap money that defined the last decade. For you as a buyer, that translates directly into a smaller budget or a higher monthly payment for the same home, which is why many would-be movers are still sitting on the sidelines.

Even though the rate on the popular 30-year fixed-rate mortgage has declined considerably from lofty levels at the start of the tightening cycle, it remains high enough to bite into your purchasing power. Reporting notes that the median existing home price is holding near record territory while the supply of homes on the market is measured in just a few months of inventory, with one source citing about 3.8 months. That combination of elevated Mortgage costs and limited choice is why the market can register a gain in sales while still feeling punishingly expensive.

Prices at record levels keep the market feeling out of reach

Rising sales would normally signal that buyers are gaining confidence, but record or near-record prices are telling you a different story. Existing-home prices have climbed to new highs in many parts of the country, even as transaction volumes lag. When you pair that with a 4.13M annual sales pace, you are looking at a market where fewer people are paying more for each property, which is not the hallmark of broad-based affordability.

For you, that means the psychological gap between what you earn and what homes cost is widening, not narrowing. Analysts describe this as part of a broader pattern in which housing has become a structural drag on household finances, with buyers forced to stretch budgets or delay ownership altogether. Until prices cool meaningfully or incomes catch up, the sense that the market is “stuck” will persist, even if the headline sales numbers edge higher.

A structural crisis behind the monthly data

If the November bump feels underwhelming, it is because you are not just dealing with a cyclical slowdown, you are confronting what some analysts call a Structural Crisis in housing. A detailed review titled Resetting the Baseline frames current Housing Costs and the New American Economic Reality as a long-running affordability squeeze rather than a short-term blip. Its KEY TAKEAWAYS argue that the gap between incomes and shelter costs has become so wide that incremental rate moves or small inventory gains are not enough to restore balance quickly.

When you view November’s 0.5% gain through that lens, it looks more like noise on top of a deeper problem. The Structural Crisis is visible in the way renters struggle to save for down payments, in the reluctance of existing owners to give up low-rate mortgages, and in the persistent shortage of moderately priced homes. You are operating in a system where the baseline has shifted, and the usual levers that once jump-started sales are now only nudging the market along.

Inventory remains tight, even as some listings return

One reason the market still feels jammed is that there are simply not enough homes for sale relative to the number of households that might like to move. The months of supply figure, which tracks how long it would take to sell all current listings at the prevailing sales pace, sits at roughly 3.8 months according to Though the latest data. A balanced market is usually closer to six months, so you are still dealing with a seller’s market in many areas, even if bidding wars have cooled.

That tight inventory is not just a statistic, it shapes your experience on the ground. As a buyer, you may find yourself touring the same handful of listings as everyone else, with little new stock appearing each week. As a seller, you benefit from limited competition, but you also face the dilemma of where to go next if you give up your current home. Until more owners are willing to list or new construction fills the gap, the market will continue to feel constrained, regardless of small month-to-month sales gains.

Regional differences: some relief, some stagnation

The national numbers hide sharp differences across regions, which you will feel if you are shopping in the Midwest versus the West Coast. The NAR report notes that Month Over Month changes in November were not uniform, with some improvement in the Midwest and West while other areas lagged behind the 0.5% national increase. That means your local experience may diverge significantly from the headline, especially in markets that saw the steepest price run-ups earlier in the cycle.

In practical terms, you might see slightly more negotiating room in a Midwestern city where prices did not overshoot as dramatically, while a coastal metro with chronic undersupply still commands top dollar. The Blueprint of this cycle is that migration patterns, job growth, and local zoning rules are all pulling in different directions, so you should treat regional data as at least as important as the national averages when making decisions.

How buyers and sellers are adapting to a stuck-feeling market

Faced with high rates, record prices, and thin inventory, you and other market participants are improvising. Buyers are stretching commutes to reach more affordable suburbs, choosing smaller homes, or turning to adjustable-rate mortgages to lower initial payments. Some are delaying purchases altogether and focusing on paying down other debts so they are better positioned when conditions finally ease.

Sellers, for their part, are becoming more strategic about pricing and timing. Many who locked in ultra-low rates are staying put, which keeps supply tight, while those who must move are investing in targeted upgrades that help justify premium pricing in a low-inventory environment. Although home sales have improved for several months in a row, analysts still describe the overall backdrop as a deep slump that fuels consumer discontent, which you can feel in the frustration of both sides of the transaction.

What to watch next if you are planning a move

Given how fragile the improvement in sales looks, your next move should be guided by a few key indicators. Keep an eye on Mortgage rates relative to that 6.2% level, since even a modest decline can meaningfully change your monthly payment and expand your options. Track inventory in your target neighborhoods, not just nationally, because a small rise in local listings can shift negotiating power in your favor even if the broader market still feels tight.

You should also pay attention to whether the 4.13 m annual sales pace holds or improves over the next few months. If Existing transactions continue to climb while prices stabilize, the market may gradually unstick, offering you more choices and slightly better value. If instead sales slip back and inventory remains constrained, the Structural Crisis described in the Resetting the Baseline analysis will continue to define your housing reality, and patience, flexibility, and careful budgeting will remain your best tools.

Like Fix It Homestead’s content? Be sure to follow us.

Here’s more from us:

• I made Joanna Gaines’s Friendsgiving casserole and here is what I would keep
• Pump Shotguns That Jam the Moment You Actually Need Them
• The First 5 Things Guests Notice About Your Living Room at Christmas
• What Caliber Works Best for Groundhogs, Armadillos, and Other Digging Pests?
• Rifles worth keeping by the back door on any rural property

*This article was developed with AI-powered tools and has been carefully reviewed by our editors.