December 2025 Market Update

Winter Slowdown and Strategic Opportunities: December Market Conditions

The real estate market began its usual mid-winter holiday season slowdown in November, market by a substantial decline in both listing and sales activity. This contraction typically accelerates through December - normally the year's slowest month - before the market begins to wake up in mid-January.

Although the inventory of new listings shrinks, December presents the period when motivated buyers can typically negotiate most aggressively, particularly on properties with extended days-on-market. As is virtually always the case, well-priced and prepared, and effectively marketed new listings can still sell quickly, often well above the asking price.

In the broader financial landscape, the first week of December saw the S&P 500 and Nasdaq largely recover from their substantial declines in November; and the 30-year mortgage rate was close to a 14-month low. While consumer confidence showed a modest rise from November, it remains very low by long-term standards. Attention is now focused on the Federal Reserve's upcoming decision regarding an end-of-year benchmark-rate reduction, and the subsequent inflation report due later in the month.

Santa Clara County's late-2025 housing data shows slight price softening and a typical seasonal drop in new listings.

Inventory is up year over year in the housing market, with slower sales, many long-sitting listings, low months of supply, and cooling overbidding as buyer demand softens.

Here are some dates showing the current economic trends. 

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