High home prices, stubbornly high mortgage rates and now less supply are all weighing on potential homebuyers.

Sales of previously owned homes rose just 0.5% in November from October and were 1% lower than November 2024, according to the National Association of Realtors. Sales came in at an annualized rate of 4.13 million units.

This count is based on closings, so it reflects contracts likely signed in September and October, when mortgage rates initially came down slightly but then stayed in a tight range.

Supply, which had been gaining for much of this year, fell in November. There were 1.43 million homes for sale at the end of the month, down 5.9% from October but up 7.5% year-over-year, according to the association. At the current sales pace, that represents a 4.2-month supply. A six-month supply is considered balanced between buyer and seller.

“Inventory growth is beginning to stall,” Lawrence Yun, chief economist for the Realtors, said in a release. “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.”

Sellers who were on the market also began to delist their properties at a higher rate than usual. Sellers often take unsold homes off the market heading into winter, but that dynamic was much stronger this year.

And that is keeping pressure on home prices. The median price of a home sold in November was $409,200, an increase of 1.2% from November 2024, and the highest November reading on record. The Realtors use a median measurement, which can skew to what end of the market is selling most. The high end is currently doing much better than the low end. Sales of homes priced in the $100,000 to $250,000 range were down nearly 8% from a year ago, while homes priced over $1 million were up 1.4%.

“Wage growth is outpacing home price gains, which improves housing affordability. Still, future affordability could be hampered if housing supply fails to keep pace with demand,” Yun said.

Homes are staying on the market longer, at 36 days compared with 32 days last November. First-time homebuyers made up 30% of sales, unchanged from a year ago, but historically they make up about 40%. Investors stepped back into the market, making up 18% of transactions, up from 13% in November 2024.