De-listing sellers spoil happy holidays vibe as prices climb

The real estate market enters 2026 with sales momentum as the number of deals for November jumped 0.5% month-over-month and annual values rose 1.2%, according to the latest data from the National Association of Realtors (NAR).

Leading property aggregator Zillow said its pricing figures showed the luxury segment increased 2.6%, but 21% of sellers in all segments had to discount to strike a deal.

The average house price stands at $409,200, and that's likely to move higher because owners are again showing a reluctance to transact.

Realtor.com reported a 6% increase in de-listings – the largest single monthly drop it has ever recorded. 

NAR has found a similar fall in housing inventories, while Zillow said its active listings dropped 8%.

Pricing pressure is also likely to increase given that mortgage rates continue to edge down. Freddie Mac reported the average interest rate for November at 6.24%. That's 0.76% lower than 12 months ago.

With the Federal Reserve making the third cut of the year to its cash rate guidance, Realtors expect more active buyers in the first half of 2026.

NAR is predicting mortgage rates will fall further to 6% this year, and it believes this could attract 5.5 million households, including 1.6 million renters, to the market.

With annual wage growth tracking at 3.5%-3.8%, an increasing number of Americans will find homes to be more affordable in 2026. 

First-time home buyers are getting this message and accounted for 30% of sales in November.

Buyers currently have the luxury of time on their side, as it is taking an average 36 days to sell a property, compared with 32 days a year ago.

So, the big issue for the American market as we enter 2026 is the attitude of homeowners. If they continue to hold onto their properties, the shortage of supply will push prices higher.

NAR chief economist Lawrence Yun said: “With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months. Inventory growth is beginning to stall.”

However, the market has improved significantly in the last 12 months. At the beginning of 2025, housing inventory was 8% lower than today's figure.

NAR says there are currently 1.43 million homes for sale and 2025 would see 4.13 million properties sold. There is currently 4.2 months of supply of homes available, compared with 3.8 months in November of last year.

On these figures alone, it is clear the US market is beginning to recover and 2026 will possibly deliver a balanced market for sellers and buyers alike.

Zillow Senior Economist Kara Ng agreed that “real progress” was made in 2025. “Mortgage payments dropped by more than $100 a month, while incomes continued to rise,” she said. “For many households, that small shift can be the difference between sitting out the market and finally being able to buy or sell a home.”