The Real Talk – December 2025
What’s Happening Right Now
As the year winds down, the housing market is showing some interesting shifts. We will give you a snapshot of what we are seeing in the market, but first, a couple of interesting articles that caught our attention…
A lot of buzz a couple weeks ago about the possibility of a 50-year mortgage. This article provides good insights: Does a 50-year mortgage make sense?
More parents are helping their kids buy homes. An interesting read if this is something you are considering: Different ways to help your kids buy a home.
By the end of the year, there will be more homes with mortgages with rates over 6% than under 3%. Will this open up the market as more sellers will not be so tied to their ultra low interest rate?
The Market Inside & Explained
Rates Are Easing, Just a Bit
Mortgage rates have pulled back from the highs we saw earlier this year. After touching above 7%, they are now settling in the low 6’s. There is less reason to pause right now, as any change the Fed may make before the end of the year has likely already been priced in.
A Surprising Shift in First-Time Buyers
The National Association of Realtors shared an eye-opening stat: the average first-time buyer is now approaching 40 years old, and their share of the market has dropped from the long-term norm of 40% to just 21% today.
This tells us two things: affordability remains a hurdle, and many younger buyers are choosing to wait longer before stepping in.
A Tale of Two Price Points
Momentum is happening at both ends of the price spectrum, but for very different reasons.
Under $500K: This is where the competition lives. Inventory is tight, and cash offers continue to squeeze out buyers who need financing.
Over $1M: The high-end market remains active. Prices are still rising, and there’s a bit more supply here, which gives buyers more options without slowing demand.
Homes Are Taking a Little Longer to Sell
Across all price ranges, days on market have crept up, but the typical home is still selling in under 50 days. This is a more “normal” pace, and it’s giving the market a steadier, less rushed feel than the rapid rate we have seen in the past few years.
Condos: A Different Story
Condo sales are down, and association dues are rising. Driven partly by higher insurance costs, many buyers question whether the convenience of association living is worth the expense.
Have Questions?
If you’re considering a move and have questions about the market, timing, neighborhoods, or best ways to simplify the buying or selling process, we’re here and can provide insights! EMAIL US
