Home sales ticked up for third straight month, but the market is still stuck in a deep slump

Core Insights - Home sales in November increased for the third consecutive month, but 2025 sales are projected to be at a 30-year low [1] - Existing home sales rose by 0.5% from October to a seasonally adjusted annual rate of 4.13 million, attributed to lower mortgage rates [1][2] - Despite recent improvements, the housing market remains in a slump due to high prices, elevated mortgage rates, and consumer unease, with sales expected to be the lowest since 1995 [4] Sales Performance - Sales increased month-over-month in the Northeast and South, remained flat in the West, and decreased in the Midwest [5] - Year-over-year, home sales are down by 1% [5] - Housing inventory decreased by 5.9% to 1.43 million units compared to October, but showed a 7.5% improvement from November 2024 [5] Economic Influences - The health of the labor market and inflation trends will be critical for the housing market in the upcoming year [5] - A rebound in the housing market is contingent on a solid labor market, income growth, and economic resilience amid ongoing affordability challenges and elevated mortgage rates [6]