As we close out 2025, the December housing data provides a clear picture of how the market finished the year and what momentum is carrying into 2026. Despite the usual seasonal slowdown, the numbers show a market that remains stable, competitive, and healthier than many headlines suggest.
Inventory declined as expected.
Active listings dropped from 987 at the beginning of December to 715 by month’s end. This seasonal pullback happens every year as sellers pause listings for the holidays and existing homes continue to sell. Even with the drop, inventory is still about 12 percent higher than last December, signaling more balance than we saw during peak scarcity years.
Sales activity remained strong.
Closed sales totaled 453 in December, up 9 percent year over year. Pending sales came in at 365, which was lower month over month but up approximately 15 percent compared to last December. With fewer homes available, fewer pendings are expected, but the year-over-year growth points to steady buyer demand.
Pricing continued to rise in 2025.
The average sold price for the year finished up 2.7 percent. While some expected prices to decline due to higher interest rates earlier in the cycle, the data show long-term resilience. It is important to note that this does not mean every home increased by the same amount. Average prices reflect what sold, not necessarily what every property gained or lost in value.
Supply remains extremely tight.
Months of inventory ended December at just 1.4 months. In practical terms, that means if no new homes were listed, inventory would be exhausted in less than six weeks. While new listings will come to market, this level of supply still favors sellers and supports pricing.
What this means moving into 2026:
- Buyers may find opportunities with motivated sellers who stayed active through the winter.
- Sellers continue to benefit from limited competition but must price correctly to capture demand.
- The market is stable, not overheated or collapsing, and behaving in a historically normal seasonal pattern.
If you are thinking about buying or selling in the coming year, understanding your specific pricing, competition, and timing matters more than ever.
To get personalized market data or a home value analysis, reach out to a City of Trees Real Estate agent. You can also watch the full December Market Update on YouTube for a deeper breakdown of the numbers and what they mean heading into 2026.
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