\nU.S. pending home sales declined 5.9% month over month in December to the lowest seasonally adjusted level on record except April 2020, according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket. Redfin\u2019s records date back to 2012.<\/p>\n
\nDecember\u2019s decline was the largest since September 2022. On a year-over-year basis, pending sales fell 7.4%.<\/p>\n
\nHomebuyers are skittish due to stubbornly high housing costs, layoffs, and mounting economic and political uncertainty. Mortgage rates have come down in recent months but are still above 6%\u2014more than double the all-time low they fell to during the pandemic. Prices are also high. The median home sale price rose 0.5% year over year in December to $428,742\u2014the highest December level on record. While that\u2019s the slowest growth since June 2023, it\u2019s still growth, and many homebuyers are priced out of the market.<\/p>\n
\nIt\u2019s worth noting that mortgage rates did briefly dip<\/a> below 6% last week after President Trump ordered a $200 billion mortgage bond purchase. That led to a jump in mortgage demand, which may boost pending home sales in January.<\/p>\n \n\u201cBuyers are extremely selective and still think prices are too high,\u201d said Alison Williams<\/a>, a Redfin Premier<\/a> real estate agent in Sacramento, CA<\/a>. \u201cThere aren\u2019t a ton of homes on the market, but there are enough for house hunters to feel like they can take their time. One challenge is that many buyers\u2019 purchases are contingent on the sale of their current property, and many sellers aren\u2019t willing to take contingent offers. This has caused a standstill in the market.\u201d<\/p>\n \nThe typical home that went under contract in December spent 60 days on the market. That\u2019s the slowest December pace in a decade and is six days higher than a year earlier.<\/p>\n \nSome buyers are also getting cold feet at the eleventh hour; roughly 40,000 home purchases were canceled in December, equal to 16.3% of homes that went under contract that month. That\u2019s the highest December share in records dating back to 2017.<\/p>\n New Listings Drop to Lowest Level in Nearly Two Years<\/b><\/p>\n \nNew listings of homes for sale declined 1.4% month over month in December to the lowest seasonally adjusted level since January 2024, and fell 4.9% year over year.<\/p>\n \nActive listings fell 1.1% month over month\u2014the largest seasonally adjusted decline since June 2023\u2014and rose 3.9% year over year.<\/p>\n \nHome sellers are retreating because buyers are retreating. Many prospective sellers are also in the market for their next home and may opt not to sell because buying that next home is too expensive.<\/p>\n \n\u201cBreaking even is a win for home sellers in today\u2019s market. Some sellers who bought in the past five years are finding themselves underwater after accounting for closing costs and commissions,\u201d Williams said. \u201cBuyers see dollar signs if a home is outdated, so sellers should make sure their homes are well maintained and provide a pre-inspection. When sellers follow that advice, they have a better chance of getting their list price and selling their home quickly.\u201d<\/p>\n \nIn many cases, sellers are offering concessions and\/or cutting their price to woo buyers. Buyers hold the negotiating power in most markets today because even though sellers have been retreating, there are still far more<\/a> sellers than buyers.<\/p>\n \nThe typical home that sold in December went for 1.8% less than its final list price, the biggest December discount since 2022. Just 22% of homes sold for more<\/i> than their final list price\u2014the lowest December share since 2019.<\/p>\n December 2025 Housing Market Highlights: United States<\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n December 2025<\/b><\/p>\n<\/td>\n Month-over-month change<\/b><\/p>\n<\/td>\n Year-over-year change<\/b><\/p>\n<\/td>\n<\/tr>\n Median sale price<\/b><\/p>\n<\/td>\n \n$428,742<\/p>\n<\/td>\n \n-1%<\/p>\n<\/td>\n \n0.5%<\/p>\n<\/td>\n<\/tr>\n Existing-home sales, seasonally adjusted annual rate<\/b><\/p>\n<\/td>\n \n4,290,826<\/p>\n<\/td>\n \n0%<\/p>\n<\/td>\n \n0.3%<\/p>\n<\/td>\n<\/tr>\n Pending home sales, seasonally adjusted<\/b><\/p>\n<\/td>\n \n457,538<\/p>\n<\/td>\n \n-5.9%<\/p>\n<\/td>\n \n-7.4%<\/p>\n<\/td>\n<\/tr>\n Homes sold, seasonally adjusted<\/b><\/p>\n<\/td>\n \n435,735<\/p>\n<\/td>\n \n0.8%<\/p>\n<\/td>\n \n-1.6%<\/p>\n<\/td>\n<\/tr>\n New listings, seasonally adjusted<\/b><\/p>\n<\/td>\n \n521,701<\/p>\n<\/td>\n \n-1.4%<\/p>\n<\/td>\n \n-4.9%<\/p>\n<\/td>\n<\/tr>\n Total homes for sale, seasonally adjusted (active listings)<\/b><\/p>\n<\/td>\n \n1,973,715<\/p>\n<\/td>\n \n-1.1%<\/p>\n<\/td>\n \n3.9%<\/p>\n<\/td>\n<\/tr>\n Months of supply<\/b><\/p>\n<\/td>\n \n2.8<\/p>\n<\/td>\n \n-1.1<\/p>\n<\/td>\n \n-0.1<\/p>\n<\/td>\n<\/tr>\n Median days on market<\/b><\/p>\n<\/td>\n \n60<\/p>\n<\/td>\n \n7<\/p>\n<\/td>\n \n6<\/p>\n<\/td>\n<\/tr>\n Share of homes that sold above final list price<\/b><\/p>\n<\/td>\n \n22%<\/p>\n<\/td>\n \n-2.3 ppts<\/p>\n<\/td>\n \n-2.2 ppts<\/p>\n<\/td>\n<\/tr>\n Average sale-to-final-list-price ratio<\/b><\/p>\n<\/td>\n \n98.2%<\/p>\n<\/td>\n \n-0.2 ppts<\/p>\n<\/td>\n \n-0.3 ppts<\/p>\n<\/td>\n<\/tr>\n Pending sales that fell out of contract, as % of overall pending sales<\/b><\/p>\n<\/td>\n \n16.3%<\/p>\n<\/td>\n \n2 ppts<\/p>\n<\/td>\n \n1.4 ppts<\/p>\n<\/td>\n<\/tr>\n Monthly average 30-year fixed mortgage rate<\/b><\/a><\/p>\n<\/td>\n \n6.19%<\/p>\n<\/td>\n \n-0.05 ppts<\/p>\n<\/td>\n \n-0.53 ppts<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Note: Data are subject to revision<\/i><\/p>\n December 2025 Metro-Level Highlights<\/b><\/p>\n \nTo view the full report, including charts, please visit: https:\/\/www.redfin.com\/news\/home-sales-fall-december-2025\/<\/a><\/p>\n About Redfin<\/b><\/p>\n \nRedfin is a technology-driven real estate company with the country’s most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin\u2019s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.<\/p>\n \nYou can find more information about Redfin and get the latest housing market data and research at https:\/\/www.redfin.com\/news<\/a>. For more information about Rocket Companies, visit https:\/\/www.rocketcompanies.com<\/a>.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260115765569\/en\/<\/a><\/span><\/p>\n\n
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