As we move toward the close of the year, new national housing data is offering important insight into where the real estate market stands and where it may be headed next. November’s numbers show a market that is no longer swinging wildly between extremes, but instead settling into a more measured and balanced rhythm.

According to recently released housing data, U.S. home prices increased modestly in November, rising 2.4 percent compared to the same time last year. The national median home price now sits at approximately $385,000. While this type of appreciation may feel subdued compared to the dramatic price growth seen during the pandemic years, it is actually a sign of stabilization rather than weakness.

This shift matters. A market that grows steadily is healthier, more predictable, and ultimately more sustainable for both buyers and sellers. To truly understand what these numbers mean, it is important to look beyond the headline and examine inventory trends, buyer behavior, housing types, and regional differences across the country.

A Market That Has Found Its Footing

For nearly a decade, the U.S. housing market experienced either rapid acceleration or abrupt slowdowns. Historically low interest rates drove intense competition, while sudden rate increases cooled activity almost overnight. November’s data suggests we are now entering a phase defined less by urgency and more by intention.

Home prices have remained within a relatively narrow range for much of the year. This price stability tells us two important things. First, sellers are adjusting expectations to align with current affordability realities. Second, buyers are still active, but they are more thoughtful and selective about their purchases.

Rather than reacting emotionally, today’s buyers are analyzing value, location, condition, and long term livability. Sellers, in turn, are recognizing that pricing strategy and presentation matter more than ever.

Inventory Growth Is Reshaping the Conversation

One of the most significant developments in the November data is the increase in available housing inventory. Compared to last year, active listings rose nearly 18 percent nationwide. This represents the highest November inventory level since 2015.

This does not mean the market is oversupplied. Instead, it means buyers finally have options. For years, limited inventory forced buyers into rushed decisions, waived contingencies, and aggressive overbidding. The return of choice has shifted the dynamic.

With more homes available, buyers can compare properties, negotiate more thoughtfully, and walk away from homes that do not meet their needs. Sellers are still selling homes, but success now depends on pricing correctly from the start and positioning a property to stand out from the competition.

In many ways, this is what a balanced market looks like.

Mortgage Rates and Buyer Psychology

Mortgage rates continue to play a central role in buyer decision making. While rates remain higher than the historic lows of recent years, they have eased from their peak levels earlier in the year. Even modest declines in rates can significantly impact affordability, monthly payments, and buyer confidence.

What is particularly notable is not just the rate level, but the stability. Buyers are becoming more comfortable with the idea that rates may remain elevated compared to the past, but they are also learning how to plan within this environment. Many buyers are choosing adjustable strategies, such as refinancing later, buying down rates, or focusing on long term ownership rather than short term market timing.

This shift in mindset has allowed transactions to continue, even in a higher rate environment.

Detached Homes Continue to Lead Price Growth

The November data highlights an important distinction between different types of housing. Detached single family homes saw stronger price growth than attached housing such as townhomes and condominiums.

Detached homes experienced price appreciation of approximately 2.6 percent year over year. Condominiums saw modest gains, while attached townhome style properties experienced slight price declines.

This trend reflects buyer preferences that have been reinforced over the last several years. Space, privacy, flexible living areas, and outdoor access continue to command premiums. Buyers are placing higher value on homes that can accommodate work from home needs, multigenerational living, or simply a more comfortable daily lifestyle.

That does not mean condos or townhomes are undesirable. Rather, it suggests that pricing sensitivity is higher in those segments, and buyers are more selective about location, amenities, and homeowner association costs.

Regional Differences Are More Important Than Ever

While national data provides helpful context, real estate remains intensely local. November’s data shows that different regions of the country are moving at different speeds.

Midwestern markets stood out as some of the strongest performers, with several cities posting notable year over year price gains. These markets tend to benefit from relative affordability, stable employment bases, and lower barriers to entry for buyers.

In contrast, some Sun Belt markets that experienced explosive growth earlier in the cycle have seen more moderation. In certain areas, prices softened slightly as inventory increased and buyers pushed back against aggressive pricing.

This divergence reinforces an essential truth. National headlines rarely tell the full story. Local supply, demand, job growth, and lifestyle appeal ultimately drive pricing. This is why working with a Realtor who understands local micro markets is critical.

What Price Stability Really Means

A 2.4 percent annual price increase may seem modest, but it is meaningful when viewed in context. This level of appreciation suggests that prices are keeping pace with inflation without overheating. It also signals that the market is correcting excesses from previous years rather than collapsing.

For homeowners, this stability protects equity while reducing volatility. For buyers, it creates a more predictable environment in which to make long term decisions. For the market as a whole, it lays the foundation for steady growth rather than boom and bust cycles.

Importantly, stable pricing does not mean stagnant activity. Homes are still selling, but they are selling based on value rather than frenzy.

What This Means for Buyers

For buyers, November’s data presents a window of opportunity that did not exist in recent years.

More inventory means more choice. Buyers can take time to evaluate neighborhoods, floor plans, and long term suitability. Negotiations are becoming more balanced, and contingencies are returning in many markets.

However, this does not mean buyers should expect dramatic discounts or wait indefinitely. Well priced homes in desirable locations continue to attract interest. The key difference is that buyers now have leverage when homes are overpriced or poorly positioned.

Strategic guidance is essential. Understanding which homes are realistically priced and which are aspirational can save buyers both time and money.

What This Means for Sellers

For sellers, the message is equally clear. The market still rewards quality and realism.

Homes that are priced appropriately for current conditions and presented well continue to sell. Homes that rely on outdated expectations often linger on the market, eventually requiring price reductions.

The rise in inventory means sellers must compete. That competition is not just about price, but also condition, staging, marketing, and accessibility for showings. Professional photography, thoughtful preparation, and accurate pricing are no longer optional.

Sellers who adapt to this environment are finding success. Those who resist it often face frustration.

Why Experience Matters More in a Balanced Market

Balanced markets are where professional skill truly matters. When homes no longer sell instantly regardless of pricing or condition, strategy becomes essential.

Accurate pricing requires deep knowledge of recent comparable sales, active competition, and buyer psychology. Negotiation requires understanding leverage, timing, and contract structure. Marketing requires more than exposure. It requires storytelling and positioning.

This is where experience makes a measurable difference. Navigating a market that is neither overheated nor distressed demands judgment built through multiple cycles, not just one moment in time.

Looking Ahead to the Coming Year

As we move toward the next year, the November data suggests we are entering a period of normalization. Price growth is likely to remain modest. Inventory will likely continue to expand gradually. Mortgage rates may fluctuate, but buyers and sellers alike are adapting.

Rather than trying to time the market perfectly, success will come from informed decision making, realistic expectations, and professional guidance.

Real estate has always been about more than numbers. It is about life transitions, financial planning, and long term security. A stable market allows those decisions to be made thoughtfully rather than under pressure.

Final Thoughts

The November housing data offers reassurance more than excitement. It tells us that the market is functioning again in a way that allows both buyers and sellers to succeed with the right strategy.

Price growth has returned, but without excess. Inventory has expanded, but without oversupply. Buyers are active, but thoughtful. Sellers are motivated, but realistic.

This is what a healthy housing market looks like.

For those considering buying or selling, the opportunity lies not in waiting for dramatic shifts, but in understanding current conditions and acting with clarity and confidence.

Suzanne Dyer
Luxury Real Estate Specialist
Strand Hill | Forbes Global Properties
Over 1 Billion Dollars in Career Sales
Top Realtor in Rolling Hills, Palos Verdes Estates, and the South Bay
310 528 7480 | [email protected]
DRE 01054310