After a challenging year for the housing market, December brought welcome news that could signal a turning point for home sellers heading into 2026. According to a recent CNBC report, national home sales closed out 2025 stronger than anyone expected, and the trends behind this surge offer important insights for Dallas–Fort Worth homeowners considering selling.
December’s Surprise Performance
The final month of 2025 delivered a pleasant surprise to the real estate industry. Existing home sales jumped 5.1% in December compared to November, reaching a seasonally adjusted annual rate of 4.35 million units—the strongest pace in nearly three years when seasonal factors are considered.
This uptick came despite a year that presented significant headwinds. While annual sales remained flat compared to 2024 at 4.06 million transactions, the momentum building in the final quarter suggests the market may be finding its footing again.
What’s Driving the Momentum?
Two key factors fueled December’s strong performance, and both remain relevant for sellers today:
Lower Mortgage Rates
The average 30-year fixed-rate mortgage in December was 6.19%, down from 6.24% in November and 6.72% one year earlier. While these rates are still higher than the rock-bottom levels of 2020-2021, they represent meaningful improvement that’s bringing buyers back to the table.
In fact, mortgage rates have continued their downward trend into 2026, recently hitting 6.06%—their lowest level in more than three years. This ongoing improvement in affordability is encouraging more buyers to move off the sidelines.
Easing Price Pressure
After years of relentless price increases, the market is showing signs of moderation. The median home price in December was $405,400, up just 0.4% from a year earlier—a notable slowdown from previous months and the smallest gain in the 30-month streak of annual increases.
For sellers, this doesn’t mean prices are falling dramatically. Rather, it signals a market that’s becoming more balanced and sustainable, where realistic pricing attracts serious buyers.
The Supply Equation
One of the most interesting dynamics playing out is the behavior of inventory. Total housing inventory dropped to 1.18 million units in December, down 18.1% from November, representing just 3.3 months of supply—well below the six-month supply considered balanced between buyers and sellers.
This lean inventory is partly what’s keeping prices in positive territory, but it also reflects something important: homeowners are taking their time deciding when to list. With many current homeowners locked into low mortgage rates from years past, the decision to sell isn’t always straightforward.
Regional Variations Tell Different Stories
The national picture doesn’t tell the whole story. Sales performance varied significantly by region in December:
- The South saw the strongest growth with a 6.9% monthly increase and a 3.6% year-over-year gain
- The West increased 6.6% month-over-month but remained flat year-over-year
- The Northeast and Midwest both posted modest gains month-over-month
For Dallas–Fort Worth sellers, these regional differences matter. Our market has experienced some price softening recently, with certain areas seeing year-over-year declines. However, the broader trend toward improved buyer activity as mortgage rates fall could help offset local pricing pressures.
What This Means for DFW Sellers in 2026
The December sales surge offers several lessons for Dallas–Fort Worth homeowners considering selling:
Timing Matters More Than Ever
The contracts that closed in December were likely signed in October and November when mortgage rates were hovering between 6.2% and 6.3%. With rates now even lower, buyer activity could strengthen further in the coming months, potentially creating a window of opportunity for well-prepared sellers.
Pricing Strategy Is Critical
With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. This means competition for buyers is real, and pricing your home competitively from the start is more important than ever. The days of automatic price escalation are behind us.
Buyer Confidence Is Returning
The combination of improving mortgage rates and moderating prices is creating conditions where buyers feel more comfortable entering the market. After years of being priced out or scared off by rising rates, many potential buyers are reassessing their options.
The High End Is Performing Better
Nationally, homes priced above $1 million saw sales increase while lower-priced homes struggled. This suggests that buyers with stronger financial positions are most active in the current market.
Looking Ahead
The housing market’s chief economist noted that while 2025 was challenging, marked by record-high prices and historically low sales, conditions began improving in the fourth quarter. The trends that drove December’s strong performance—lower mortgage rates, slower price growth, and returning buyer confidence—appear poised to continue into 2026.
For Dallas–Fort Worth sellers, this creates both opportunity and complexity. The market isn’t as frenzied as it was during the pandemic boom years, which means homes won’t sell themselves. But with the right pricing, preparation, and timing, the improving fundamentals could work in your favor.
The key is to understand that we’re in a different market now—one where buyers have more choices and more time to consider them. Success will come to sellers who price realistically, present their homes well, and work with professionals who understand the nuanced dynamics of today’s market.
The bottom line: December’s strong finish to 2025 wasn’t a fluke—it was the result of real improvements in market conditions. As we move through early 2026, these trends appear to be continuing. For Dallas–Fort Worth sellers, that means the market may be more favorable than many headlines suggest, but only for those who approach it with clear eyes and the right strategy.
Source:
Diana Olick, “Existing home sales end 2025 stronger than expected,” CNBC, January 14, 2026.