Home Prices Ease While Inventory Opens Up for Buyers

by Joy Dumandan

skyline-of-jacksonville

Homebuyers shopping for a new home will find median list prices lower compared to the same period a year ago, according to the Realtor.com® Weekly Housing Trends Report.

The year is starting off with a "macroeconomic" shift which bodes well for the housing market. This is in contrast from the way 2025 ended, but Realtor.com economists explain it's far from "robust."

Mortgage interest rates remain close to 6%—at one point falling to its lowest level since 2022. The economists point out inflation has continued to moderate and labor market data points toward stability than "deterioration."

"Even so, these modest improvements have yet to translate into a meaningful reacceleration in housing demand, and the weekly data continue to reflect a market adjusting to slower conditions," says Sabrina Speianu, economic data manager at Realtor.com.

Lower mortgage rates has helped the housing market nationally, but affordability remains a concern for buyers considering coming off the sidelines. Many homeowners, who have locked-in lower mortgage rates, are staying put—this is playing a huge rule in buyer behavior.

A majority of homeowners still hold lower rate loans, but a growing share of owners are carrying mortgage rates above 6%.

The median home list price fell 0.3% year over year. The national median list price in December 2025 stands at $399,950.

While the decline is described as modest, the report says the small year-over-year drop points to gradual price adjustments rather than widespread discounting. Median listing price per square foot also fell 1.8% year over year.

Active inventory rose 9.5% year over year showing that the number of homes for sale is above last year's level. This is giving buyers more options, but inventory growth means both a rise in new listings and a slower pace of sales—meaning homes aren't finding buyers and the market is less competitive for them, too.

Adding to the active inventory are new listing, as mentioned. New listings, which is a measure of sellers putting homes for sale, increased 4.2% year over year. The increase shows sellers are re-entering the market after the holidays, despite buyers not making a move.

"While the gain is not large, it signals that supply growth in early 2026 is partially supported by fresh listings and not solely by homes lingering on the market," says Speianu.

But with more active and new listings, homes are spending lingering longer on the market. Homes for sale spent six days longer than a year ago. The report explains sellers face more competition and homes are taking longer to go under contract as buyers are weighing options.

The length of time a home is staying on the market aligns with what's considered a slower winter season. On the other hand, this week's trends suggests the slowdown "goes byond normal seasonality."

Keith Francis

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keith@roundtablerealty.com

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