December Housing Market Recap: More Balanced Ground
In December, the U.S. housing market showed signs of closing out the year in a more balanced way. The previous few years were in a time of constant competition, and limited inventories. December showed more even competition across a number of metro areas. Home pricing growth persisted in December, and the number of home sales increased as measured against a year earlier. Together these stats indicated a market that was still active.
Home Sales Finished the Year on an Upward Note
Home sales in December were 14.9% greater than in November 2025 and 5.0% greater than in December of the last year. This momentum helped to close a year that closely mirrored 2024. Home sales were consistent through the year. Out of these five months, the sales from five of the last seven months grew when compared to the sales from the year before.
Price Growth Continued
Across 52 metro areas the median sales price was $434,000 in December in 2025. This was an increase of 1.1% from last year. The price increase marked 30 months of consecutive growth. For buyers, slower price growth, meant more time to breathe. Ultimately, price growth provided buyers with flexibility in negotiations, especially in heavily supplied markets. For sellers, the data reinforced the importance of pricing correctly because buyers were less likely to overpay.
A few metro areas experienced price growth such as Coeur d’Alene in Idaho, Burlington in Vermont, and Anchorage in Alaska. Metro areas of Dover in Delaware, Honolulu, and San Francisco saw decreases. These changes in price reinforced the values of supply, demand, and affordability of different regions.
Inventory Increased and Options Expanded
One of the most significant changes compared to last year was inventory. The number of homes for sale in December rose 16.5 percent year over year, even though new listings declined. This increase in available homes gave buyers more choices than they had in recent Decembers. Month over month, inventory declined by 11.0 percent, which aligned with typical seasonal patterns as fewer sellers list homes during the winter months.
The year-over-year improvement signaled progress toward a healthier supply-demand balance. Months’ supply of inventory reached 3.5 in December, up from 3.0 one year earlier. For buyers, higher inventory meant the ability to compare options and take time with decisions,.
For sellers, it meant facing more competition and the need to differentiate listings through pricing, condition, and marketing.
Homes Took Longer to Sell
The average days on market increased to 61 days in December, which was a week longer than both November 2025 and the same month one year earlier. This marked the longest average listing-to-contract timeline in at least four years. This shift reflected buyers becoming more deliberate. Despite longer timelines, sellers still achieved strong results when pricing aligned with market realities. Buyers paid an average of 98 percent of the asking price in December, unchanged from both November and one year earlier. In markets such as Hartford, San Francisco, and New York, homes still sold above list price on average.
A Market Moving Toward Normal
Across the country, local agents reported signs of normalization. In the Washington, D.C. metro area, for example, homes spent more time on the market. These conditions reflected a more balanced environment where both buyers and sellers had opportunity.
Inventory improved, price growth moderated, and activity remained steady. For both buyers and sellers, success depended less on timing the market and more on preparation, realistic expectations, and professional guidance. As the year ended, the data suggested that the housing market had settled into a rhythm that rewarded informed decisions and thoughtful strategy.
