U.S. Existing-Home Sales Fall 5.5% in October as Inventory Rises

Sales of previously owned U.S. homes fell 5.5% in October from September to a seasonally adjusted annual pace of 3.75 million, the National Association of Realtors reported Nov. 12. Closings were down 8.8% from a year earlier. The national median sale price, however, rose 0.4% from October 2025 to $416,700.

The numbers describe a market with fewer completed deals and more homes left unsold, not a broad drop in prices. The 3.75 million figure is an annualized pace, not the number of homes sold in October. And the median is the midpoint of the homes that sold, not a measure of how every individual property’s value changed.

Buyers had more listings to choose from

Unsold inventory reached 1.59 million homes, up 1.3% from September and 4.6% from a year earlier. At October’s sales pace, that represented 5.1 months of supply, compared with 4.7 months in September and 4.4 months a year earlier. Months of supply can rise because there are more homes for sale or because fewer are selling. Both moved in that direction in October.

The association’s confidence survey showed a median of 35 days on the market, up from 33 days in September. First-time buyers accounted for 29% of sales, compared with 31% the previous month and 32% a year earlier. These are national figures. They do not tell a buyer how much competition to expect for a specific home.

Sales and prices did not move together everywhere

Sales declined from September in the Midwest, South and West and were unchanged in the Northeast. All four regions recorded fewer sales than a year earlier. The national median price increase also hid differences: the South’s median was down 0.4% from a year earlier, the West’s was unchanged, and the Northeast and Midwest posted increases.

NAR cited a Freddie Mac average 30-year fixed mortgage rate of 7.33% for October, up from 6.86% in September. That compares two months, not two lender quotes. October closings can also reflect contracts and financing arrangements made earlier, so the report does not isolate how much of the sales decline came from rates alone.

What to check before making an offer

Look at recent comparable sales and the time similar homes are spending on the market in the neighborhood where you’re shopping. Then compare the monthly payment and cash needed at closing under the same loan terms. More listings nationally can give buyers more choices, but a home with multiple offers and a comparable home sitting unsold for weeks may call for very different bids.

Archival view of San Francisco’s Sunset District, April 2018. Photo: Drngogo via Wikimedia Commons, CC BY-SA 4.0. The photo is not specific to October sales or the national data.