The U.S. housing market ended 2025 on a surprisingly strong note. According to the National Association of REALTORS® (NAR), existing-home sales climbed 5.1% in December 2025, reaching a seasonally adjusted annual rate of 4.35 million homes sold — the fastest pace in nearly three years.

This surge in sales comes as mortgage rates eased, providing breathing room for buyers after years of headwinds. For anyone watching housing trends — whether you’re considering buying, selling, or simply keeping an eye on the market — the December bump offers a more positive backdrop for what’s ahead in 2026.

📈 Here’s What Happened in December

• Sales increased 5.1% compared to November, the strongest monthly gain in the last three years.

• All four U.S. regions saw gains month-over-month.

• The median existing-home price was $405,400, a modest 0.4% year-over-year increase and still near historic highs.

• Mortgage rates drifted downward, with the average 30-year fixed rate around 6.19% — a relief compared with the higher rates seen earlier in the year.

While high prices and tight inventory remain challenges, the December sales jump signals that buyers are coming back into the market when financing conditions improve.

🏠 Why This Matters for 2026

Economists and housing forecasts suggest that 2026 could be a year of gradual improvement in the housing market — one where more buyers and sellers find common ground.

🔹 Mortgage Rates Are Trending Easier

Forecasts show that mortgage rates are expected to average around 6.3% in 2026, slightly lower than 2025’s average. This doesn’t mean dramatic drops back to ultra-low levels, but it does help many buyers qualify for mortgages more affordably than they could just months ago.

As rates become more predictable and less volatile, buyers can plan with more confidence — and that often translates into more homes going under contract.

🔹 Sales and Inventory Should Slowly Improve

Industry projections indicate that for-sale inventory could grow by nearly 9% in 2026, giving buyers a bit more choice and flexibility than recent years have offered.

Existing-home sales are also expected to increase modestly, reflecting continued recovery from the decade-low levels seen in 2024 and 2025. Essentially, we should be seeing positive and steady progress rather than stagnation.

🔹 Affordability Is Getting a Little Easier

Another bright spot: incomes are projected to grow faster than home-price appreciation, helping more buyers afford homeownership without stretching their budgets as much as before. This trend is expected to bring the typical share of income spent on mortgage payments below 30% — a key milestone for many buyers.

🌟 A Positive Outlook for Real People

For everyday buyers and sellers, this backdrop offers a more reassuring story:

✅ Lower mortgage rates make monthly payments more manageable.
✅ More homes coming onto the market means more options.
✅ Modest price growth helps keep affordability from slipping further.

In plain terms: 2026 looks like a year where the market stabilizes and improves, not one defined by sudden booms or breakdowns. It’s the kind of environment that helps buyers find their footing and sellers connect with motivated buyers.

👀 What We’re Seeing Locally

National trends are important—but what matters most is how they translate on the ground. As buyer confidence has picked up, we’ve seen that momentum reflected locally as well. 

During the last month of 2025 through the beginning of January 2026, Tricia Keith has nearly $8M in closed sales and has over $20M under contract, supporting the broader data pointing toward a more active and balanced market heading into 2026.

For buyers, this shift means more opportunities across a range of price points. If you’re actively searching, you can explore our current listings under $1 million for strong value opportunities, or browse homes and ranches priced over $1 million to see what’s available in today’s luxury market. As inventory gradually improves, prepared buyers are finding they have more options—and more room to negotiate—than they did just a year ago.

For sellers, recent market activity tells an encouraging story. Properties that are priced correctly and positioned with a clear marketing strategy are continuing to move. You can view our recently sold properties to see how homes are performing in the current market and how thoughtful pricing and timing are translating into successful closings.

As we move further into 2026, these local results mirror what national data is already showing: a market that’s stabilizing, gaining momentum, and creating real opportunities for both buyers and sellers who are ready to make a move. 

Whether you’re planning your next move or simply exploring options, connect with Tricia Keith to work with a Top 1% real estate team in Texas specializing in land and ranch, luxury residential, lakefront, and commercial properties.