A new survey from the National Association of Realtors suggests that confidence is slowly improving across the housing market. Both buyer and seller outlooks strengthened in December, signaling cautious optimism as the market heads deeper into 2026.
The latest Realtors Confidence Index shows more real estate professionals expect higher traffic from buyers and sellers over the next three months compared with both the prior month and the same period last year.
Even so, homes are taking longer to sell. The average number of days on the market rose to 39, up from 36 in November and 35 a year ago. Despite that slowdown, sellers are still receiving an average of 2.2 offers per listing, unchanged from recent months.
First-time buyers continue to face challenges. Their share of total purchases slipped slightly to 29%, while cash buyers maintained a strong presence, accounting for 28% of all transactions.
More Agents Expect Increased Market Activity
Survey respondents reported rising expectations for near-term traffic:
- 31% expect buyer traffic to increase year over year over the next three months, up from 22% last month and 27% a year ago.
- 28% expect seller traffic to rise year over year, up from 18% last month and 27% a year ago.
These gains suggest that lower mortgage rates and easing price growth may be encouraging more people to reengage with the market, even as overall conditions remain uneven.
December 2025 Market Snapshot
Several core indicators remained steady or showed modest shifts:
- Median days on market: 39 days
- First-time buyers: 29% of sales
- Non-primary residence purchases: 18%
- Vacation home purchases: 7%
- Cash buyers: 28%
- Distressed sales: 2%
- Average offers per listing: 2.2
- Homes sold above list price: 16%
While some markets still face limited supply, the share of homes selling above asking price declined slightly from November and matched last year’s level, pointing to a calmer pricing environment overall.
Contract Trends Remain Stable
Contract activity showed few major changes:
- About 5% of buyers purchased a home without seeing it in person, roughly unchanged from recent months.
- Most contracts continued to close within 30 days, similar to last month and last year.
- 5% of contracts were terminated over the past three months, in line with historical levels.
- 14% of contracts experienced delayed settlements, nearly unchanged from prior periods.
- Appraisal-related delays held steady at 6%.
These figures suggest that while transactions may take longer, major disruptions remain limited.
First-Time Buyers Still Under Pressure
First-time buyers made up a smaller share of purchases than a year ago, reflecting ongoing affordability challenges. Meanwhile:
- 18% of buyers purchased homes for non-primary use, unchanged from last month but higher than last year.
- Vacation home purchases rose to 7%, up from 4% a year ago.
- Sales to iBuyers remained minimal at 2%.
- Distressed sales stayed flat at 2%.
Buyers are also becoming more cautious. Fewer waived inspection contingencies, dropping to 18%, while appraisal waivers held steady at 19%.
Buyers Continue to Favor Suburban Areas
One trend remains clear: most buyers are still searching outside city centers. Roughly 83% of buyer activity took place in suburban or non-urban areas, showing that space, value, and flexibility continue to outweigh proximity to downtown cores.
What This Means Going Forward
The NAR survey points to a market that is slowly regaining balance. Buyer and seller interest is improving, but patience remains key. Homes are sitting longer, negotiations are more common, and affordability continues to shape decisions.
If mortgage rates stay near current levels and economic conditions remain steady, the modest rise in buyer and seller traffic could continue into the spring. For now, the data suggests a housing market that is moving forward carefully, and without urgency. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
