November Housing Market Update: Why U.S. Home Sales Are Struggling Despite Strong Demand

 

November Housing Market Update: Why U.S. Home Sales Are Struggling Despite Strong Demand

            Here's a recent CNBC post on the state of the US Housing market + an overview 

The latest housing data shows something unusual in the U.S. real estate market: people want to buy homes, but home sales are still struggling, and the biggest reason isn’t interest rates or a lack of buyers—it’s the lack of available homes for sale. In a recent CNBC interview, real estate analyst Diana Olick breaks down what’s happening in the market and why November existing-home sales reflect a supply problem more than anything else.

November Home Sales: Slow Movement, Not a Market Collapse

Existing-home sales numbers for November came in weak, and while that might sound alarming at first glance, the story behind the numbers matters. Sales activity hasn’t crashed—it’s simply slowed because there aren’t enough homes to sell. Buyers remain in the market, but the limited selection is making it difficult to complete transactions.

In other words, this is a supply-driven slowdown, not a demand-driven one.

Inventory Remains the Biggest Challenge

One of the clearest themes from the November report is that inventory continues to stall. Fewer homeowners are listing properties, many are still “locked in” with lower mortgage rates, and new construction alone can’t fill the gap. This tight supply means:

• Fewer choices for buyers
• Continued competition for desirable homes
• Ongoing pressure on pricing
• Difficult conditions for first-time buyers

Even as economic conditions shift and seasonal slowdowns normally occur late in the year, the real challenge continues to be the limited number of homes available.

What This Means for Buyers and Sellers

For buyers, the message is patience and preparation. Well-priced homes are still selling quickly, and competition remains real because demand hasn’t disappeared.

For sellers, the story is almost the opposite. Limited inventory can work in your favor. Homes that are priced correctly and well-presented continue to attract solid interest because there simply aren’t enough alternatives on the market.

For the overall market, the takeaway from November is clear: housing activity is being held back by supply, not lack of interest.

Bottom Line

The November housing report shows slow existing-home sales, but the slowdown is driven primarily by one factor—not enough homes on the market. Until inventory improves, we can expect this dynamic to continue: motivated buyers, limited options, and a market that feels tighter than the headline numbers may suggest.

Weitz Take:

This is interesting. I agree with the facts, but my interpretation of it as different as we take into account that many properties are being ‘taken off the market’ for not selling which would contradict this CNBC analysis. I’d argue that sellers are simply asking for prices that buyers are unwilling or unable to pay. In fact, CNBC had a news story about a month ago that addresses this exact issue so its a bit shocking to see this analysis now. 

Sellers take homes off market 

Overview: 

*     Roughly 15% of the homes that were delisted in September were at risk of selling at a loss, according to Redfin.

*    Redfin found 70% of homes listed in September were on the market for 60 days or longer.

* The supply of homes for sale is about 15% higher now than it was a year ago.

For more information Everett Commercial Real Estate or Snohomish Commercial Real Estate, we are happy to help.

Scott Weitz

Weitz Commercial 

Scott@WeitzCommercial.com

T: 206-306-4034