December 2025 Overview

December’s housing market reflected the typical year-end slowdown, with activity easing across most metrics as buyers and sellers paused around the holidays. Momentum softened, negotiations became more common, and patience played a bigger role on both sides of the transaction. In a market like this, strategy matters more than speed, and having an experienced guide can make the difference between sitting and selling.

Median sales prices declined both month-over-month and year-over-year, signaling continued normalization after earlier volatility. New listings also fell on both measures, as many sellers chose to wait until the new year rather than compete during a quieter season. Inventory dipped month-over-month, which is standard for December, but remains up 9.6% year-over-year, keeping buyers in a position of leverage and reinforcing the importance of pricing correctly from the start.

Pending sales declined month-over-month and year-over-year, while closed sales rose slightly from November but trailed last year’s pace. This disconnect highlights how deals already in motion were able to close, even as new contract activity slowed. Median days on market climbed on both fronts, reflecting a more deliberate buyer pool and the reality that homes now need stronger positioning to stand out.

Homes are still selling, but terms are shifting. The percentage of list price received is trending down, negotiations are more frequent, and both showings-to-pending ratios and showings per listing have softened. As we close out the year, success hinges on preparation, realistic expectations, and early buyer engagement. Sellers who price thoughtfully and present well can still capture serious interest, even in a slower December market.

Mark Daker of Ameris Bank InsightsEmpty heading

Mortgage rates in December remained relatively steady as markets stayed quiet ahead of the Fed’s final meeting of the year. While another rate cut was widely expected, certainty was lower than in prior months. Delayed economic data limited market movement, though a lower-than-expected core inflation reading of 2.8% helped keep expectations for continued Fed easing intact.

As anticipated, the Fed delivered another rate cut, which had little impact on mortgage rates since the move was already priced in. Some internal dissent emerged among Fed members, but overall commentary remained supportive of additional rate cuts looking ahead to 2026. Mortgage rates edged slightly lower during the month while continuing to trade within a narrow range.

Overall, December closed with mortgage rates near their lowest levels of the year and in a stronger position than where they began. Solid GDP growth, improved jobless claims, and record stock market highs added optimism that stable inflation and ongoing economic momentum could support housing activity moving into 2026.