• Existing-home sales increased 1.2% month-over-month to a seasonally adjusted annual rate of 4.1 million units
  • The median home sale price reached $440,523 with just 1.4% year-over-year growth
  • Buyer leverage strengthened with homes selling for 1.5% below final list price, the largest October discount since 2019

US existing-home sales continued their modest recovery in October, rising 1.2% from September to a seasonally adjusted annual rate of 4.1 million units, according to the latest market data. The increase follows a 1.5% gain in September when sales reached 4.08 million, suggesting the housing market's momentum may be plateauing rather than accelerating.

The October figures reflect a market in transition, where improved inventory levels and declining mortgage rates are providing some support to sales activity while affordability challenges persist. The modest deceleration from September's pace indicates that the boost from falling borrowing costs may be losing steam as economic uncertainty lingers.

Pricing dynamics have stabilized considerably from the rapid appreciation seen in recent years. The median home sale price reached $440,523 in October, representing only a 1.4% year-over-year increase—a sharp slowdown from the 4.1% growth recorded at the beginning of 2025. This moderation follows several years of double-digit price gains from 2020 through 2024 that pushed many buyers to the sidelines.

Buyers are gaining negotiating power in the current environment. The typical home that sold in October went for 1.5% less than its final list price, marking the largest October discount since 2019, according to people familiar with the matter. This shift reflects increasingly buyer-favorable conditions where inventory growth has provided more options and leverage.

Active listings rose 15.3% year-over-year in October, continuing a 24-month streak of inventory gains, though the pace of growth has slowed significantly in recent months. Total homes for sale reached approximately 1.97 million units on a seasonally adjusted basis, representing a 6.8% year-over-year increase. The months of supply metric stands at 3.3 months, indicating a relatively balanced market between buyers and sellers.

Regional variations tell a more complex story than the national numbers suggest. While the average market shows stagnation, specific metropolitan areas are experiencing divergent trends. San Francisco has seen jumping demand and shrinking supply, while Washington, D.C. recorded sharp inventory increases of 38.2% year-over-year before new listings dipped in October amid government shutdown concerns.

Mortgage rates declining to 12-month lows have provided some relief to potential buyers. The average 30-year fixed-rate mortgage was 6.35% in September, down from 6.59% in August, according to market data. However, the response from buyers has been measured, with homes spending 51 days on the market in October—up 7 days from the prior year—representing the 19th consecutive month of increasing time-on-market.

Economists expect existing-home sales to end 2025 roughly flat with 2024, which was already the worst year for sales since 1995. The combination of elevated housing costs, economic uncertainty, and slowing inventory growth suggests the housing market has entered a period of stabilization rather than robust recovery.

Efforts to reach representatives from major real estate firms for comment on the October figures were not immediately successful. Market participants will be watching closely to see if the current equilibrium holds through the typically slower winter months or if economic headwinds begin to weigh more heavily on transaction volumes.