WHAT HAPPENED IN THE FOURTH QUARTER OF 2025

The metropolitan housing market closed out 2025 with a softer fourth quarter. Closings declined across the region—down in Westchester & the Hudson Valley, down in Fairfield County, and down slightly in Northern New Jersey—showing that year-end activity cooled even as the market remained fundamentally active.

That cooling showed up in the forward-looking numbers as well. Pending sales slipped modestly in Q4, signaling a potentially slower start to 2026 unless demand strengthens or more inventory comes to market.

Even with fewer transactions, prices continued to climb, reaching new highs. Average sale prices rose across all markets, reinforcing the core reality we’ve seen for several years: buyers are still competing for too few homes, which keeps pricing power firmly with sellers.

On the supply side, listings stayed weak, and inventory remained historically tight. New listings were flat overall but softer in key markets, and months of inventory remained near multi-year lows—well below the level considered balanced. Until more homes come to market, price pressure is unlikely to ease, and buyers should expect continued competition into early 2026.