The U.S. housing market experienced a familiar seasonal slowdown in November, with home sales dropping sharply after an encouraging spike in early fall, according to exclusive data from Homes.com.
After two months of year-over-year gains—sales up 7.4% in September and 2.4% in October—November saw a reversal. Completed sales of new and existing single-family homes and condos totaled 247,193, marking an 8.6% decline from the previous year. Transactions fell in all but two of the 40 major markets tracked.
This pullback comes despite positive underlying factors that fueled the early-fall momentum. Inventory levels over the past three months were more than 15% higher than the same period a year ago, giving buyers more options. Combined with a gradual easing in mortgage rates from their summer highs, this created a more navigable environment for purchasers.
“That larger inventory of homes available for purchase, along with a slight decline in mortgage interest rates from their early-summer peak, may have made it easier for buyers to navigate the market,” noted the Homes.com report.
Regional Variations in Home Sales Highlight Shifting Dynamics
The downturn wasn’t uniform across the country. Cleveland (+0.8%) and Phoenix (+0.6%) were the only markets to post gains. In contrast, San Jose saw the steepest drop at 20.1%, followed by Tampa at 5.7%. Several cities that had shown strong growth earlier in the fall—such as Los Angeles, San Francisco, and San Diego—experienced notable declines.
“The sharpest declines… were in markets that had already shown waning activity during October,” the analysis observed.
A Broader Perspective: Still Ahead Annually
While November’s stumble grabs attention, the bigger picture remains mildly positive. Over the past 12 months, total sales exceeded 3.5 million—0.5% higher than the prior 12-month period. This suggests the market has maintained modest momentum despite monthly fluctuations and ongoing affordability challenges.
The November dip aligns with typical seasonal patterns, as buyer activity naturally cools heading into winter. From a summer peak of nearly 345,000 completed sales in June, the drop to under 250,000 in November reflects the cyclical nature of real estate.
Summary
So what lies ahead? As inventory continues to build and mortgage rates show signs of stabilization, the stage could be set for renewed activity in the spring. For now, the November slowdown serves as a reminder that while the housing market is improving in key ways, it’s still sensitive to seasonal rhythms and economic signals.
Buyers and sellers alike should watch mortgage trends closely, as even small rate movements can significantly impact affordability and momentum in 2026.
Of course, each market is unique. For this reason, it is always advisable to work with a trusted and knowledgeable real estate agent in your local area. If you are in the South Florida area, contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search App for your smartphone or tablet.
