Top Real Estate News & What It Means for Agents: December 2025
- Sarah Bates
- Dec 26, 2025
- 5 min read
Stay up to date with the most important real estate news from December 2025—and our breakdown of what it all means for agents. Brought to you by SmoothTC — the company that keeps you prepared and helps you shine.
Start Soliciting and Nurturing the Owners of "Shadow Inventory"
The owners of “Shadow Inventory” are due to enter the market if income levels rise and mortgage rates ease (Click to Read More)
According to new analysis from Real Estate News, the housing market is entering a transitional phase defined by “shadow inventory”—roughly 150,000 homes nationally that were delisted rather than sold. Unlike past cycles, these homes are owned by sellers with strong equity positions and often low mortgage rates, who are waiting for more favorable conditions before re-entering the market. Chief among the factors that could unlock this inventory are lower mortgage rates, improving hiring trends, and rising buyer confidence.
What this means for Agents: Search RealTracs for delistings and mail targeted marketing material that speaks directly to equity-rich homeowners who paused their sale waiting for more favorable conditions. When a lead shows interest, customize your strategy to fit their goals: offer a conservative approach (refinancing or strategic financing to buy first) or an aggressive plan (immediate listing preparation). Agents who build these relationships today are best positioned to win the listing as soon as the market or client is ready to move.
Educate Potential Buyers with Creative Financing Options like Buydowns and Assumable Mortgages
Fed says rate cuts alone can’t fix housing shortage leaving potential buyers in the need of a boost (Click to Read More)
The Federal Reserve lowered its target federal funds rate to 3.5–3.75 percent in a 9‑3 split vote. Chair Jerome Powell and eight governors supported the quarter‑point cut, while three dissenters preferred either a larger cut or no cut at all. Policymakers noted that economic activity has moderated, job gains have slowed and inflation remains somewhat elevated. Powell acknowledged that the housing market faces serious challenges – including supply shortages and the “mortgage lock‑in” effect – and he cautioned that a 25‑basis‑point cut alone is unlikely to substantially improve affordability. Fed projections suggest just one more rate cut in 2026 and another in 2027.
What this means for Agents: Connect with your preferred lender to master the creative financing tools available in today's market, such as buydowns, assumable mortgages, HELOCs, etc. With the Fed signaling that rates may stay in the low-to-mid 6% range for the foreseeable future, these alternatives are essential for bridging the affordability gap. While the Nashville forecast requires sellers to be realistic about pricing, your ability to explain these financing options and their qualifications will be paramount in guiding hesitant buyers to move forward with confidence.
Point Investors to NAR's 10 Predicted Hot Spots of 2026
NAR forecasts a 2026 rebound, naming the top 10 housing hot spots (Click to Read More)
At its Real Estate Forecast Summit (Dec. 9, 2025), the National Association of REALTORS® released its Top 10 homebuying markets for 2026, highlighting mid-sized metros such as Charleston, Charlotte, Columbus, and Indianapolis as likely standouts. NAR also forecasted existing-home sales up 14% and prices up about 4% in 2026, with mortgage rates trending toward ~6% and inventory expanding—conditions that could improve affordability and unlock pent-up demand. The key takeaway isn’t just “where to buy,” but where investor activity and relocation demand may concentrate next. For Nashville agents, this creates a timely opportunity to expand investor conversations beyond local deals.
What this means for Agents: As the spotlight shifts away from the Nashville market, agents can provide significant value by educating investors on out-of-state opportunities. By leveraging NAR’s 2026 Predicted Hot Spot List and partnering with reliable local referral agents, agents can offer clients faster deal access and better market intelligence. Agents who already have boots-on-the-ground partners in these hotspots will be able to offer investors faster deal access, better intel, and more confidence—making it easier to win and retain investor clients long-term.
Highlight Stability Over Rapid Appreciation for Properties Near Naturally Occurring Affordable Housing Units
$30 million fund aims to preserve Nashville’s Naturally Occurring Affordable Housing (Click to Read More)
Nashville‑based community lender Pathway Lending launched a $30 million housing fund to acquire and preserve naturally occurring affordable housing (NOAH) in Tennessee. Backed by local banks and investors, the fund will purchase existing multifamily properties in Davidson County and other markets to keep them affordable for low‑and moderate‑income families. Pathway’s CEO Matt Largen said Tennessee faces a critical shortage of NOAH units and that the fund will be a long‑term owner to prevent displacement.
What this means for Agents: With increased investment in preserving naturally occurring affordable housing, agents should help clients understand that properties near these assets may favor long-term stability over rapid appreciation. Agents can add value by setting realistic appreciation expectations, guiding investors toward income-focused strategies in these areas, and helping sellers position their properties around stability, community demand, and long-term market resilience rather than aggressive price growth.
Use Days-on-Market and Any Prior Price Reductions To Strategically Guide Negotiations
Holiday slowdown deepens: new listings decline and days on market extend (Click to Read More)
Redfin’s weekly market report found that U.S. new listings fell 1.7% year-over-year in the four weeks ending Dec. 7, marking the sharpest decline in more than two years. Pending sales dropped 4.1% compared with last year, and homes that sold spent a median of 51 days on the market—about a week longer than a year earlier. Even with softer demand, the median sale price rose 2% to $389,123 due to tight inventory. Mortgage rates averaged 6.19% (their lowest level of 2025), but ongoing economic uncertainty and tariff concerns kept many sellers cautious.
What this means for Agents: Sellers should use days-on-market and any prior price reductions as a strategic framework for negotiation—not as a reason to panic. That data helps Seller’s decide when to hold firm, when to reposition pricing, and when to shift to concessions (closing costs, rate buydowns, repairs) to protect net proceeds while still getting the deal done. In Nashville, nearly 4 in 10 listings showed price cuts in late November, and homes across Middle Tennessee have been taking around 84 days to sell—so buyers are increasingly trained to negotiate when they see longer DOM and reductions. The win is helping sellers stay proactive: either re-energize the listing with a smart adjustment and fresh marketing push, or confidently push back on low offers using clear, market-backed reasoning.
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About the Author
Sarah Bates is a Transaction Coordinator with a strong foundation in real property and transaction management. She holds a B.A. in English/Pre-Law from the University of Tennessee at Chattanooga and earned her Juris Doctorate from the Nashville School of Law, earning her the nickname of “a TC with a JD”.
She began her real estate journey as an Office Manager for a boutique brokerage, where she quickly applied her legal education and attention to detail to real estate transactions. In 2023, Sarah completed advanced professional training from the Transaction Coordinator Academy, solidifying her expertise in real estate transaction management.
Today, she serves as a Transaction Coordinator at SmoothTC with five years experience in the industry, specializing in managing transaction details, deadlines, and brokerage compliance for real estate agents. Her legal education, combined with hands-on experience, makes her a trusted resource for agents seeking smooth, accurate, and efficient closings.
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