Small Steps Higher, Same Stubbornly Low Territory for Existing Home Sales

Existing-home sales posted another modest gain in October, rising 1.2% to a seasonally adjusted annual rate of 4.10 million , according to the National Association of Realtors (NAR). Sales are now 1.7% higher than a year ago as lower mortgage rates helped offset the drag from the government shutdown. Demand continues to run stronger than it did through most of 2023 and early 2024, even if the overall pace remains historically subdued. “Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates,” said NAR Chief Economist Lawrence Yun. He highlighted regional differences for first-time buyers: limited supply in the Northeast and high prices in the West kept activity in check, while the Midwest and South benefited from better affordability and more available listings. Yun added that decelerating rents should continue easing inflation and encouraging further Fed rate cuts, which would support additional housing demand. Regional Breakdown (Sales and Prices, October 2025) Region Sales (annual rate) MoM Change Median Price YoY Change Northeast 490k 0.0% $503,700 +6.5% Midwest 990k +5.3% $319,500 +4.6% South 1.86m +0.5% $362,300 +0.3% West 760k -1.3% $628,500 +0.1%