December Housing Market Report: How the Market Looks Entering 2026

A snapshot of where the market stands heading into the new year.

Housing headlines can swing dramatically from week to week, especially as mortgage rates, affordability, and economic uncertainty pull buyers and sellers in different directions. November marked a clear shift into seasonal behavior after an unusually active fall, with many homeowners choosing patience and many buyers slowing their search as the year winds down.

That’s why Nuvision shares these monthly housing report updates. Instead of chasing headlines, we pull together insights from trusted housing data sources to give members a clearer, more grounded view of what’s happening right now. This report isn’t about predicting the market — it’s about helping you understand current conditions, so you can make confident decisions for the life you’re building.

Steven Thomas: Condos Are Taking Longer to Sell in California

In California, attached homes, such as a townhouse or duplex, are clearly losing momentum compared to detached houses (single family homes). According to Steven Thomas, the average market time for attached homes has climbed to 95 days, compared to 82 days for detached properties. Condominiums were once the obvious steppingstone into homeownership, offering lower prices and a lifestyle-oriented alternative. But that value gap has narrowed significantly.

While attached homes still have a lower sticker price, rising costs have eroded much of the savings. Median Homeowners Association (HOA) fees for attached homes reached $502 per month in November, alongside a median sales price of $810,000. Detached homes, by contrast, carried a much higher median price of $1.4 million, but typically came with no HOA fees at all. Higher insurance costs, increased maintenance expenses, and underfunded reserve accounts are pushing monthly dues higher and weighing on demand.

Financing has also become more challenging. Lenders closely examine the financial health of entire condo associations, including reserve levels, delinquent dues, insurance coverage, litigation, and owner occupancy rates. New balcony inspection requirements in California have added another hurdle, sometimes delaying closings and reducing seller proceeds. With higher mortgage rates, elevated inventory, and rising HOA fees, attached homes are taking longer to sell. The condominium slowdown has arrived heading into 2026.

Zillow: Affordability Improved in 2025, but Sellers Pulled Back Into Winter

According to Zillow, November marked a return to normal seasonal behavior after a strong early fall. New listings fell nearly 30% from October to November, the largest November drop in years, as many sellers chose to wait rather than push for a winter sale. Price cuts also cooled, falling from nearly 27% of listings in October to about 21% in November, right in line with seasonal norms.

Affordability made meaningful progress in 2025, even if it remains a hurdle. Monthly mortgage payments fell by more than $100 year over year, and the share of median household income needed for a mortgage declined to 32.6%, the lowest level since 2022. Flattening home values, easing rates, and rising incomes all contributed. Still, many homeowners without urgency are holding out hope for stronger spring conditions instead of adjusting prices now.

Inventory grew compared to last year, giving buyers more options and leverage than they have had in recent years. Home values nationwide are essentially flat, up just 0.2% year over year, and more than half of homes saw price declines over the past year. Even so, November brought a seasonal slowdown, with newly pending sales falling 18.5% month-over-month, while remaining slightly higher than last year. Zillow characterizes the national market as neutral as winter settles in.

Redfin: Buyers and Sellers Pull Back Amid High Costs and Uncertainty

Data from Redfin shows a noticeable pullback in activity heading into the holidays. Pending home sales fell 5.8% year-over-year, the largest decline seen in nearly a year. Homes that do sell are taking longer to go under contract, with the typical home now taking about 52 days, roughly a week longer than last year.

Buyers remain cautious as mortgage rates stay above 6% and economic uncertainty lingers. Many prospective buyers are waiting for clearer signals around job stability, interest rates, and the broader economy before making a major purchase. That hesitation is affecting sellers as well. New listings declined 3.1% year-over-year, the steepest drop in more than two years, as homeowners step back into a market that increasingly favors buyers.

Inventory growth has slowed alongside demand. The total number of homes for sale is up just 4.2% from last year, the smallest increase since early 2024. Redfin agents note that sellers who do list their homes need to be realistic. Buyers facing high monthly payments expect fair pricing, strong condition, and are increasingly negotiating for repairs or concessions to make deals work.

National Association of Realtors: Modest Sales Gains, Inventory Still Tight

The National Association of Realtors reported a 0.5% month-over-month increase in existing-home sales in November, marking the third straight monthly gain. Despite that improvement, sales remain 1.0% lower than a year ago, reflecting the ongoing affordability and inventory challenges across the market.

Inventory tightened during the month, with total housing supply falling 5.9% from October to 1.43 million units, equal to a 4.2-month supply. Prices continue to edge higher, with the median existing home price reaching $409,200, up 1.2% year over year. Wage growth has helped improve affordability somewhat, but NAR cautions that limited supply could slow further progress.

Single-family homes continue to outperform condominiums. Condo and co-op sales declined 2.6% both month over month and year over year, while single-family sales rose modestly. While condos remain cheaper on paper, rising association fees are making them more expensive to own, reinforcing trends seen in California and other high-cost markets.

Top 5 Takeaways

The market has shifted firmly into a seasonal slowdown.
New listings fell sharply late in the year, with Zillow reporting a nearly 30% month-over-month drop in November and Redfin showing the largest year-over-year decline in new listings in more than two years. Both buyers and sellers are pulling back as winter sets in.

Affordability improved in 2025, but remains a constraint.
Zillow data shows monthly mortgage payments are down more than $100 year over year, and the share of income needed for a mortgage fell to 32.6%, the lowest level since 2022. Despite that progress, mortgage rates above 6% continue to limit demand.

Homes are taking longer to sell across multiple segments.
Redfin reports the typical home now takes 51–52 days to go under contract, about a week longer than last year. In California, Steven Thomas notes attached homes average 95 days on market, compared to 82 days for detached homes.

Condominiums are underperforming single-family homes.
NAR reports condo and co-op sales fell 2.6% month over month and year over year, while single-family sales increased modestly. Rising HOA fees, financing challenges, and added inspection requirements are contributing to longer market times for attached homes.

Inventory remains tight, even as buyer leverage improves.
NAR shows total housing inventory declined 5.9% month-over-month to a 4.2-month supply, while Zillow and Redfin both report inventory growth slowing late in the year. Buyers have more leverage than in recent years, but supply remains constrained.

What This Means for Buyers and Sellers

December is typically a reset month for the housing market, and this year is no different. Activity has slowed, pricing has stabilized, and many buyers and sellers are choosing to wait rather than rush decisions at year-end. That pause can be useful. It creates space to review finances, clarify goals, and prepare for opportunities when the market becomes more active again. Whether you plan to buy, sell, or simply stay put, understanding these shifts helps you move into the new year with clearer expectations and fewer surprises.