Housing Market Update: Buyer Demand Rises and Prices Stabilize

Recent housing and economic data delivered a pleasant surprise. Buyer activity is picking up, home prices are showing signs of renewed stability, and the job market continues to support consumer confidence. Together, these trends suggest the housing market may be entering a healthier phase than many expected.

Here’s what stood out and why it matters.

Buyer Activity Is Rebounding Faster Than Expected

Contract activity on existing homes rose meaningfully in November, marking the strongest pace seen in several years. Since signed contracts typically turn into closed sales within one to two months, this increase points to stronger transaction volume ahead.

What’s driving the shift? Several affordability factors are starting to align. Mortgage rates have come down from recent highs, wage growth has continued to outpace home price gains, and inventory has improved compared to earlier in the year. These changes are helping buyers who were previously priced out or waiting on the sidelines feel more comfortable making a move.

Why it matters: Rising contract activity often signals increased closings in the near future, which is a key indicator of market momentum.

Home Prices Are Stabilizing and Gaining Traction

Home price data is also showing encouraging signs. While prices dipped slightly on a non-seasonally adjusted basis earlier in the fall, seasonally adjusted figures show that values are moving higher again. On a year-over-year basis, national home prices remain modestly higher, and the pace of appreciation has begun to firm.

Multiple pricing indexes are now pointing in the same direction: home values are no longer weakening and may be entering a period of gradual acceleration. This is especially notable given how cautious buyers have been over the past year.

Why it matters: As demand improves and supply remains limited in many markets, even moderate increases in buyer activity can support higher home prices moving forward.

Labor Market Remains Supportive

The labor market continues to show stability. New unemployment filings declined recently, and the number of people continuing to receive benefits also moved lower. Seasonal factors likely played a role, as layoffs often slow near the holidays and some filings may have been delayed due to travel and timing.

Additionally, many individuals who filed for benefits earlier in the year may now be reaching the end of their eligibility period, contributing to the recent decline in continuing claims.

Why it matters: A steady job market supports household income, consumer confidence, and the ability for buyers to qualify for and sustain homeownership.

The Big Picture for Buyers and Sellers

Taken together, these data points suggest the housing market is regaining balance. Buyer demand is improving, home prices are stabilizing with signs of upward momentum, and employment conditions remain favorable.

For buyers, this reinforces the importance of preparation. As competition slowly returns, having financing in place can make a meaningful difference. For sellers, improving demand may translate into stronger interest, particularly for homes that are priced correctly and well-presented.

Market conditions will always vary by location and personal situation, but understanding the broader trends helps you make informed decisions.

If you want to talk through what this means for your goals, The Mortgage Gurus are here to guide you with clarity and confidence.