November 21, 2025
Home prices – just yikes. They just keep going up — in fact home prices in this country have increased every month for more than two years straight. And here’s what’s curious about that – according to a new report home sales are also up…not by a lot but still – people are definitely still buying homes even with these high ass prices. How is that making sense? Where are people getting this kind of money?
That – I can’t answer for you…– but I do know what the report says about why home sales are up. So let’s talk about it.
The report I’m talking about is the existing home sales report from the National Association of Eealtors for the month of October. I want to start with the price of a home. Now – when I say home – I am using the definition in the report which is – single family, townhome, condo and co-op.
The least expensive homes were in the Midwest. But the National Association of Realtors says even those prices were up 4.6% when compared to October of 2024 the median home price in the Midwest was $319,500.
The third most expensive homes were in the South. The report says the median home price there was more than $362,300 that’s up just slightly when compared to October of 2024. (+0.3%).
The second most expensive homes were in the Northeast where the prices were up 6.5% compared to last year. The median home price in the Northeast was $503,700.
And the most expensive homes were in the West…where the median home price was $628,500. That was up just barely from last year (0.1%)
So now – at these prices – how are home sales increasing? Well – first – we need to take a step back. While the it’s true home sales increased by almost 2 percent (1.7%) between October 2025 and October 2024. It’s also true that when you put that increase into context you can see home sales are still down by a lot– especially when compared to October 2021….see how much higher the home sales numbers were back then compared to now?
But still – sales are up just a little bit. So how is that possible? According to the national association of realtors – lots of those sales for first time homebuyers are being attributed to sales in the Midwest and the South because there is a lot of supply. NAR says first time homebuyers are struggling in the Northeast because of lack of supply and were struggling in the West because of high home prices.
Read the report here.
