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December Not Such A Merry Month For Housing

Jan 15, 2026
December Not Such A Merry Month
Staff Writer

Pending home sales in December 2025 dropped to their second-lowest level on record as buyers pulled back amid high costs and economic uncertainty, while home prices remained elevated and listings declined

Save for a spring month six years ago, pending home sales have never been lower than they were in December, the latest Redfin report reveals.

December is usually a slow month anyway, what with the holidays and all. But would-be buyers are still skittish about the economy, ever rising house prices, and high mortgage rates. And as a result, pending sales slid 5.9% compared to November.

The decline was the largest since September 2022, Redfin reported. On a year-over-year basis, pending sales were off 7.4%.

Pending sales are the market’s leading indicator. It counts properties that have gone under contract but have not yet closed. It is worth noting that not all deals close; indeed, the number of “sales” that never reach the settlement table is on the rise as buyers, for whatever reason, have a change of heart.

Pending home sales in December 2025 dropped to their second-lowest level on record as buyers pulled back amid high costs and economic uncertainty, while home prices remained elevated and listings declined

Buyers aren’t the only ones in retreat mode. So are sellers, largely because buyers are doing the same. Redfin says new listings dipped 1.4% month-to-month in December to their lowest level in nearly two years. Year-over-year, listings fell 4.9%.

At the same time, active listings fell 1.1% month over month — the largest seasonally adjusted decline since June 2023 — but rose 3.9% year-over-year.

The typical house that sold in December went for 1.8% less than its final list price, the largest December discount since 2022. Just 22% of homes sold for more than their final list price, the lowest December share since 2019.

Houses in the month were on the market for a median of 60 days before landing a buyer.

The news is not all bad, though. In another report, Redfin says monthly housing costs started the year down by 5%, the largest decline in more than a year as buyers gain a tad of relief from a slight dip in mortgage rates.

The median monthly housing payment slipped to $2,413 during the four weeks ending January 11, near the lowest level in two years and down 5.5% from a year earlier. That’s also the largest decline since October 2024 the brokerage firm said.

The main reason: mortgage rates are falling. The daily average mortgage rate dropped to 5.99% in early January, its lowest level in nearly three years, before ticking back up to 6.07%. And the impact has been substantial.

Buyer’s purchasing power has increased by roughly $14,000 in the last month and $30,000 in the last six months, Redfin says.

About the author
Staff Writer
Lew Sichelman has been covering the housing and mortgage sectors for 52 years. His syndicated column appears in major newspapers throughout the country.
Published
Jan 15, 2026
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