The strength of the American housing market continues to build with sales of existing homes rising 5.1% in December to provide a powerful beginning for 2026.
The jump in sales for December compared with the previous month put the national market’s seasonally-adjusted annual rate of existing home sales at 4.35 million.
The December home sales are the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month.
The National Association of Realtors (NAR) reported an 18.1% decrease in unsold inventory – another strong sign the American property market is finding additional momentum, encouraged by falling mortgage costs.
The average 30-year mortgage cost in December was 6.19%, down from 6.72% 12 months ago.
For existing homes, there are 1.18 million on the market, which represents a supply of 3.3 months – a further indication of strength.
NAR said existing-home sales have increased 1.4% year-over-year.
The median price for existing homes of all types is up 0.4% compared to one year ago, rising from $403,700 to $405,400 – the 30th consecutive month of year-over-year price increases.
Month-over-month sales increased in all regions, too.
Across 2025, NAR said, the strength of the market was led by the South. The Midwest and West remained largely flat and there was a slight fall in existing sales numbers in the Northeast.
Nevertheless, the December data suggests the US property market has started 2026 with strong momentum.
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun.
“However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth.
“Inventory levels remain tight,” Yun added. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come onto the market (this month).”
Single-family homes delivered a seasonally adjusted annual rate of sales of 3.95 million, up 1.8% from December 2024. The median home price in December was $409,500, up 0.2% from last year.
Condominiums and co-ops also performed strongly with a 5.3% increase in sales month-over-month to a seasonally adjusted annual rate of 400,000. The median price for this sector is $364,400, up 1.5% from December 2024.
Meanwhile, Freddie Mac reported falling mortgage costs. The average interest for a 30-year, fixed rate mortgage was 6.19%, down from 6.24% in November and 6.72% a year ago.