US Housing Market Update: Buyers Gain Leverage as Sellers Adjust Prices
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US Housing Market Update: Buyers Gain Leverage as Sellers Adjust Prices
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The US housing market is entering December with a notable shift in buyer and seller dynamics. As of this week, serious buyers are actively competing for homes, while sellers face mounting pressure to adjust pricing before year-end.
Recent Market Data and Activity
Last week showed 135 new listings hitting the market, which is lower than typical but normal for the post-Thanksgiving period. However, price reductions increased significantly to 179, indicating sellers are aggressively correcting overpriced inventory from October and November. The standout metric came with 196 homes going under contract during the Thanksgiving week, a strong number that exceeded new listings, suggesting demand is outpacing supply. Seventy-seven homes closed during this period.
The national 30-year mortgage rate currently sits at 6.144 percent, down from approximately 6.25 percent one week ago. Despite Federal Reserve rate cuts in September and October of 2025, mortgage rates have remained stubbornly elevated compared to historic lows of 2.65 percent in January 2021.
Market Dynamics and Buyer Behavior
Serious buyers are dominating the market despite seasonal headwinds. These motivated purchasers are either facing lease expirations or urgent relocation needs, giving them leverage against a tightened inventory. Real estate analysts forecast new listings will rebound slightly in the coming weeks as sellers who delayed during Thanksgiving finally list properties, though price reductions will remain high through Christmas.
Affordability remains a critical constraint. The median house price-to-income ratio reached 5.81 times median household income in 2022, compared to 3.57 in 1984. Millennial renters with zero down payment savings jumped to 67 percent in 2023 from 48 percent in 2018, reflecting broader affordability pressures.
Foreclosure Activity and Price Pressures
October 2025 data revealed foreclosure filings surged 20 percent year-over-year to 36,766 properties nationwide. This combination of rising foreclosures with declining prices in certain markets raises concerns reminiscent of 2008 dynamics, though experts emphasize current conditions differ fundamentally.
December Outlook
Buyers seeking value should focus on homes with price cuts, potentially negotiating closing cost assistance. For sellers, the window for capturing serious buyers before year-end is narrowing, with mid to late December expected to bring increased closing activity. The market remains competitive despite seasonal expectations, defying traditional holiday slowdowns.
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This content was created in partnership and with the help of Artificial Intelligence AI
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