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December market stats often get overlooked, but they tell an important story about where the market really is—and where it’s heading. As we close out the sales from December 2025, the data shows a market that has shifted from urgency to intention, with buyers and sellers adjusting to a more balanced environment.
New listings are a great place to start. December is typically a quieter month for sellers thanks to the holidays, yet December 2025 saw stronger seller participation than the year before. That’s a signal worth noting. Many sellers aren’t waiting for a “perfect” spring market—they’re listing because life changes are happening now. It also means competition didn’t disappear just because the calendar flipped to December. Even in winter, listings need to be priced and presented well to stand out.
Inventory continues to be the headline. Active listings in December 2025 were the highest we’ve seen for this month in years. Buyers have more options than they’ve had for most of this market cycle, and that extra choice changes behavior. Buyers compare more homes, negotiate more confidently, and feel less pressure to rush. For sellers, this means the margin for error is smaller. Homes that are priced right and show well still sell, but overpriced or tired listings get passed over quickly.
Pending sales give us the clearest picture of real-time demand. December 2025 outperformed last December, showing buyers are still active, but the pace is far more measured than the frenzy years. Today’s buyers are cautious and conditional. They’re asking for repairs, credits, or rate buydowns—and they’re quicker to walk away if a deal doesn’t add up. When buyers have choices, they act like it.
Closed sales were also up compared to last December, which matters because closings are proof that deals are getting done. Since closings lag behind contract activity, this tells us that buyers and sellers are finding ways to bridge affordability gaps through concessions, price adjustments, and better-aligned expectations.
Months of supply reinforces this story. By December 2025, the market had moved into a more balanced zone than earlier in the decade. Buyers have time to think, and sellers have to compete. This doesn’t signal a price collapse—it signals a market that rewards precision. Pricing, condition, and marketing all matter more now than they did during the boom.
Median sales price held steady compared to last December, which highlights the shift from rapid appreciation to stability. In a rate-sensitive environment, prices often move sideways rather than dropping sharply. What’s really changing is leverage. Buyers now have more room to negotiate price reductions, credits, and repairs because they’re no longer competing against a dozen offers.
Finally, average days on market tell the clearest truth. Homes took longer to sell in December 2025 than they did last year—and much longer than during the frenzy years. That’s expected in a winter month with higher inventory. Buyers are slower, pickier, and more willing to wait. Homes that are positioned correctly still move; those that aren’t simply sit while buyers scroll on.
The takeaway is simple: this is a thoughtful, balanced market. Buyers have options, sellers need strategy, and success depends on getting the details right. Precision wins—and that’s where strong guidance makes all the difference.
Whether you’re considering listing your home, making a move, or simply curious about your neighborhood’s trends, I can help you navigate the market with clarity and confidence.
*Stats provided with permission from the East Tennessee Realtors Multiple Listing Service. As reported by Claudia Stallings, Wallace Real Estate COO.
