Real Estate Market Update: November 2025

Mortgage rates keep inching down, inventory is slowly expanding, and more homebuyers are dipping their toes in the market. 

The pace isn’t fast, but it’s steady. That alone is a noticeable shift from where we were earlier this year.

We’re still in that “in-between” phase of the market that I touched on last month. However, housing market updates have finally said 2026 could be the year for big changes.

Here’s a look at what’s happening and what it means for buyers and sellers as we approach the holiday season.

November Housing Market Trends

We’re still seeing steady improvements in the national housing market. Home sales, prices, and inventory have all increased, while mortgage rates dropped yet again. Here’s what happened this month.

Existing Homes

In October, existing home sales increased by 1.2%, according to the National Association of Realtors (NAR). The median existing-home price was $415,200, a 2.1% increase from a year ago. This is the 28th consecutive month of yearly price gains.

According to NAR chief economist Lawrence Yun, homebuyers still took advantage of lower mortgage rates despite the government shutdown. Rents are also decelerating, which could encourage the Federal Reserve to continue rate cuts, helping bring more buyers into the market.

New Construction Homes

Realtor.com reported that the price gap between new and existing homes hit a record low in the third quarter. The median list price for a newly built, single-family home is $451,337, up 0.2% from the previous year.

Right now, builders are doubling down on incentives to help lower mortgage rates and upfront costs.

According to the National Association of Home Builders (NAHB), 41% of home builders reported cutting prices in November. This is the first time this measure has passed 40%. The average price reduction was 6% the same month.

Housing Inventory

Total inventory was down 0.7% from September, but up 10.9% from October 2024, NAR reported. There’s a 4.4-month supply of unsold inventory, down from 4.5 months in September and up from 4.1 months in October 2024.

In the new construction market, builders have a good amount of spec inventory available. According to Joel Berner, senior economist at Realtor.com, builders are trying to move this move-in inventory now as the market cools seasonally and in terms of price and sales growth.

Mortgage Rates

Going into the Thanksgiving holidays, mortgage rates decreased to 6.23% for a 30-year fixed-rate mortgage, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). This is down from the previous week’s average of 6.26%. Last year, it was 6.81%.

The Federal Open Market Committee (FOMC) will vote on rate policy on Dec. 10. Another quarter-point rate cut to the federal funds rate, which is an 80% probability, would likely lower mortgage rates even further, Realtor.com reported.

DC Housing Market Update

In the Northern Virginia and D.C. housing markets, the market continued its strong performance, showing growth that outpaced the national market.

According to the Northern Virginia Association of Realtors (NVAR), the pace of sales accelerated, increasing by 7.5% compared to October 2024, whereas sales only increased by 1.7% nationally.

The region’s median sold price was $750,000, up 4.9% year-over-year, indicating continued demand for housing, particularly in key job centers and sought-after communities, NVAR noted. The housing supply also increased to 1.85 months, a 36.8% rise over last year.

"What we’re seeing is a reaffirmation of Northern Virginia’s market resiliency,” said NVAR CEO Ryan McLaughlin. Buyers are active and motivated, and the region’s economy continues to spark confidence.

This is terrific news as we near 2026. According to NVAR, the market shows signs of equilibrium and long-term stability.

Signs the Housing Market Is Turning a Corner

We’ve been in a strange stretch due to high rates, cautious buyers and sellers, and tight inventory. But a few shifts lately point to a rebound beginning. 

Here’s what market experts are watching (and what you should, too):

• Mortgage rates are cooling off. NAR forecasts 2026 will bring a dip in borrowing costs, with 30-year fixed rates averaging around 6%. Over time, that could ease affordability pressure and draw more buyers back into the mix.

• Sales volume is projected to rise. NAR expects a roughly 14% jump in existing-home sales nationwide in 2026. This is a sign that demand may finally ramp up after years of sluggishness. This suggests buyers are getting off the sidelines and re-entering the market.

• Supply is loosening up a bit. More sellers seem willing to list after years stuck with low-rate mortgages; some are finally ready to sell. This uptick in listings gives buyers more options and helps rebalance a market that’s been supply-constrained for a long time.

• Buyer activity is slowly creeping back. With better affordability and more homes on the market, demand appears to be rising. That mix (more sellers, more inventory, and improving rates) is creating the conditions for a steady recovery.

• Prices are likely to remain stable while the market normalizes. According to NAR’s outlook, home prices nationwide are forecast to rise about 4% in 2026, meaning a rebound won’t come with major volatility. 

It doesn’t feel like a frenzy. There’s no dramatic rebound. This is more like a gradual reset with better rates, more homes, and growing buyer interest. If you’re weighing whether to buy or sell, 2026 may finally be the year to make a move.

Final Thoughts

The housing market isn’t suddenly “fixed,” but we’re finally seeing momentum in the right direction, including cooler mortgage rates, steady job growth, stronger buyer activity, and a more balanced flow of inventory.

We’ve seen slow improvements since the housing frenzy during the pandemic, but next year could be different.

“Next year is really the year that we will see a measurable increase in sales,” Yun told attendees at the Residential Economic Issues and Trends Forum. 

If 2026 is your year to make a move, now is the time to start preparing!

Looking to buy or sell in the DC area? Don’t navigate the complexities of the current housing market alone! Reach out today for expert real estate leadership.