Year over year, December also represented a 1.4 percent increase in sales.
NAR chief economist Lawrence Yun noted that the market showed signs of improvement during the latter part of the year.
“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” Yun said in the report.
“However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years.”
Bankrate housing market analyst Jeff Ostrowski said in a note to The Epoch Times that while the growing percentage of home sales is a good sign, sales are far below 2019 and 2020 levels.
“They are still near historic lows—an annual pace of 4.35 million home sales in December 2025,” he said.
“For context, during the pandemic, home sales were well above 6 million a year, and a typical year before the pandemic saw more than 5 million sales.”
Month-over-month sales increased in all regions of the country, with more than 6 percent increases in the South and West, and more than 2 percent in the Northeast and Midwest. However, year over year, sales grew in the South, remained flat in the Midwest and West, and decreased in the Northeast.
The median sales price continued to rise, standing at $409,500 for single-family homes—a 0.2 percent uptick from December 2024. For all housing types, including condos, co-ops, and multi-family units, the median price recorded in December was $405,400, a 0.4 percent rise from one year ago.
This represents the 30th consecutive month of year-over-year price increases for all housing types.
“Affordability remains a challenge, especially for first-time buyers,” Ostrowski said. “A recent dip in mortgage rates might help some buyers get into the market, but home prices remain stuck at record highs.”
Meanwhile, inventory declined by more than 18 percent in December from November, but rose by 3.5 percent from December 2024. As of December 2025, the nation’s housing supply was at 3.3 months—a drop from 4.2 months in November, but up slightly from 3.2 months in December 2024.
“Inventory levels remain tight,” Yun said. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February.”
Ostrowski agrees. “The inventory of homes for sale plunged 18 percent from November to December as the lock-in effect remained in place and soft prices caused sellers to pull their homes off the market,” he said.
Median single-family home prices varied widely by region, with the West garnering the highest price at $605,600, a 1.4 percent decline from December 2024. Homes in the Northeast were the second-highest priced in the nation, with a median of $496,700, a 3.7 percent increase from one year ago. The median price in the South was down by just 0.3 percent to $360,200, and the Midwest offered the lowest median price at $306,000, up 3.1 percent from last year.
The nation’s condos and co-ops experienced an even higher month-over-month increase in sales in December, with a 5.3 percent to 2.4 percent drop from December 2024. However, median prices of these home types were up 1.5 percent from last year to $364,400.
