December Not Such A Merry Month For Housing – NMP Skip to main content

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
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026