Sales of previously owned homes in December rose to a seasonally adjusted, annualized rate of 4.35 million units, a 5.1% increase from November. This was higher than analysts' expectations of a 2%
December Home Sales Exceed Expectations
Dated: January 23 2026
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Sales of previously owned homes in December rose to a seasonally adjusted, annualized rate of 4.35 million units, a 5.1% increase from November. This was higher than analysts' expectations of a 2% gain. Sales were 1.4% higher than a year earlier.
For the full year, there were 4.06 million existing home sales, unchanged from 2024.
After adjusting for seasonal factors, December sales were the strongest in nearly three years. Sales increased in all regions month-over-month and were higher annually in the Northeast and Midwest, but lower in the South and West.
This count is based on closings, so sales contracts were likely signed in October and November, when mortgage rates weren't moving much. The average rate on the 30-year fixed loan hovered between 6.2% and 6.3% during that time. That rate, however, was lower than it was last spring and summer, when it was closer to 7%.
Inventory was the big headline of the monthly report. There were 1.18 million units available for sale at the end of December, down 18% from November, although 3.5% higher year-over-year.
With stronger sales, that dropped the supply to just 3.3 months, which is considered quite lean. Low supply kept prices in positive territory, although just barely.
The median price of a home sold in December was $405,400, up 0.4% annually and the 30th straight month of annual gains. The increase, however, was smaller than the 1.2% gain in November.1
Leslie Swain
As a dedicated REALTOR® in Northwest Georgia since 2016, with my PSA (Pricing Strategy Advisor) and ABR (Accredited Buyer's Representative) designations, I've built my career on turning real estat....
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