Each week, I analyze the evolving dynamics of the market, identifying emerging trends, shifts in momentum, and key considerations for real estate professionals. Last week was shaped by notable updates in the labor market, inflation trends, and continued momentum in home sales. Existing home sales rose for the third consecutive month in November, reaching their strongest annualized sales rate since February. New inflation data offered encouraging signs of easing, while the latest jobs numbers reflect a labor market with subdued hiring and limited overall layoffs.
Below are key events from the third week of December impacting our business.
December 22, 2025
EXISTING HOME SALES EDGE HIGHER IN NOVEMBER. Existing home sales increased for the third straight month in November, reaching the highest level since February. Despite the monthly improvement, sales remained 1% below last year’s level. Inventory declined to 1.43 million units, down 5.9% from October, but 7.5% higher than a year earlier. Homes spent a median of 36 days on the market — a modest slowdown — while the median sales price rose 1.2% year over year to $409,200, marking the 29th consecutive month of annual price appreciation. Full story from EYEONHOUSING →
- Why this Matters: The recent uptick in existing home sales offers consumers an important signal about where the housing market may be heading. Lower mortgage rates have helped push sales higher for three consecutive months, bringing activity to its strongest pace since February. For buyers, this momentum suggests that borrowing conditions are gradually improving, potentially easing some persistent affordability pressures. For sellers, rising prices remain a key advantage. The median sales price increased 1.2% year over year, marking nearly two and a half years of uninterrupted annual gains. This continued appreciation underscores the resilience of home values, even in a fluid and uncertain economic environment.
INFLATION COOLS UNEXPECTEDLY IN POSITIVE SIGN FOR HOUSING MARKET. Overall inflation eased in November, with the Consumer Price Index rising 2.7% year-over-year — below expectations and down from the 3% pace recorded in September. Core inflation, which excludes food and energy, slowed to 2.6%, its lowest level since early 2021. Cooler housing inflation played a major role in the slowdown, with shelter costs rising 3% annually, the slowest pace in more than two years. Because housing represents roughly one-third of the CPI, this moderation played a significant role in lowering the overall inflation reading. Full story from REALTOR.COM →
- Why this Matters: The latest inflation report offers encouraging news for consumers. Easing inflation directly benefits consumers by slowing the pace of price increases on everyday goods and services. As overall and core inflation move lower, household budgets face less pressure, making it easier for families to plan and manage expenses. Cooling housing costs are especially meaningful, since shelter is one of the largest monthly expenses for most people. When inflation stabilizes, it can also influence borrowing costs over time, creating a more favorable environment for mortgages, auto loans, and other credit.
DELAYED JOBS REPORT SHOWS PAYROLLS ROSE IN NOVEMBER, FELL IN OCTOBER. Nonfarm payrolls rose by 64,000 in November, modestly outperforming expectations and partially rebounding from a sharp decline in October, according to delayed data from the Bureau of Labor Statistics. The unemployment rate increased to 4.6%, the highest level in four years, with the BLS noting that shutdown-related disruptions will affect household survey results for several months. Revised October figures showed payrolls falling by 105,000, driven largely by significant reductions in government employment as previously planned layoffs took effect. Overall, the data reflects a labor market experiencing slower momentum and ongoing adjustment following earlier government workforce cuts. Full story from CNBC →
- Why this Matters: While job growth improved in November, the rise in the unemployment rate signals a cooling labor market. For individuals and families, these trends matter because the labor market plays a central role in shaping borrowing costs, consumer confidence, and overall economic stability. A subdued job market can influence future interest rate decisions, affect hiring plans across industries, and shape the financial landscape consumers will face in the months ahead.
THE BOTTOM LINE: The economic landscape last week reflected a mix of stabilizing and shifting forces that directly shape consumer confidence and affordability. Home sales continued to strengthen amid lower mortgage rates, while home prices maintained steady annual gains, reinforcing the resilience of home values. At the same time, inflation eased more than expected, offering households some relief from rising living costs and improving the outlook for future borrowing conditions. Labor market data showed modest job growth alongside a higher unemployment rate, signaling a cooling but still stable employment environment. Together, these trends point to a market in transition, one where easing inflation and improving mortgage conditions offer consumers new opportunities, even as a softer labor market introduces a note of caution.
Disclaimer: this is a compilation of industry news from trade media and industry groups; it does not share any forward-looking predictions or projections.
