The following article is provided by Claudia Stallings,  Chief Operating Officer at Wallace Real Estate, serving East Tennessee since 1936.

December market stats often get overlooked, but they can be some of the most telling numbers of the year. As we closed out December 2025, the data pointed to a market that continues to shift from urgency to intention, with buyers and sellers adjusting to a more balanced environment.

One of the first signals came from new listings. December is typically quieter because of the holidays, yet December 2025 saw stronger seller participation than the year before. That matters. It tells us many homeowners are not waiting for a “perfect” spring market. They are listing because real life is moving, whether that means a job change, a growing household, downsizing, or a new chapter. It also means competition does not disappear in winter. Even in colder months, listings still need to be priced and presented well to earn attention.

Inventory remains the headline. Active listings in December 2025 were the highest we have seen for this month in years. Buyers have more options than they have had for most of this market cycle, and that extra choice is changing behavior. Buyers are comparing more homes, negotiating more confidently, and feeling less pressure to rush. For sellers, the margin for error is smaller. Homes that are priced right and show well can still sell, but overpriced or tired listings are quicker to get passed over.

Pending sales gave us the clearest picture of real-time demand. December 2025 outperformed December 2024, showing buyers are still active, but at a more measured pace than the frenzy years. Today’s buyers are cautious and conditional. They are asking for repairs, credits, or rate solutions, and they are more willing to walk away when a deal does not add up.

Closed sales were also up compared to last December, which is important because closings are proof that deals are getting done. Since closings lag behind contract activity, this tells us buyers and sellers are finding ways to bridge affordability gaps through concessions, price adjustments, and better-aligned expectations.

Months of supply reinforced the same story. We are operating in a more balanced zone than earlier in the decade. Buyers have time to think, and sellers have to compete. This does not signal a price collapse. It signals a market that rewards precision. Pricing, condition, and marketing all matter more now than they did during the boom.

Median sales price held steady compared to last December, which highlights the shift from rapid appreciation to stability. In a rate-sensitive environment, prices often move sideways rather than dropping sharply. What has changed is leverage. Buyers now have more room to negotiate, and sellers need a plan that matches the realities of today’s market.

The takeaway is simple. This is a thoughtful market. Buyers have options, sellers need strategy, and success depends on getting the details right. If you are considering listing, making a move, or just trying to understand what the numbers mean for your neighborhood, working with a trusted professional can help you navigate with clarity and confidence.

Kate Spears is the social media and events specialist for Wallace Real Estate and can be reached at kate@wallacetn.com.

When you need real estate support, contact Wallace Real Estate, the leader in the industry.

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