Montgomery County Housing Market: Wrapping Up 2025 with a Twist!

Well, folks, the final numbers for 2025 are officially in, and December's data threw a fascinating curveball to cap off the year. Now that we're in January, we can look back and see the complete picture of how the Montgomery County housing market performed. So, let's dive into the data and see what it tells us about the year-end and the year as a whole.

The Big Picture: December By the Numbers

Let's get straight to the vital signs of the Montgomery County housing market for December 2025. It was a month of interesting contradictions.

The Nitty Gritty: What Does It All Mean?

Listings & Sales: A Tale of Two Tapes

December saw a typical seasonal slowdown in new inventory, with new listings dropping a chilly 35.6% from November. This is a common trend as the winter months set in. However, buyer activity remained surprisingly robust. Closed sales shot up an impressive 21.1% from November and 13.9% from last December. It seems that while fewer homes were coming on the market, the ones that were available were getting snapped up by determined buyers looking to close before the year's end.

Prices: Holding Steady

Despite the flurry of closed sales, the median sold price held steady at $455,000, a negligible 0.2% dip from November but still up 1.1% from December 2024. This indicates a market that is finding its footing, where prices are neither skyrocketing nor plummeting. It's a sign of stability, which is a welcome sight after the rollercoaster of the past few years.

Inventory & Time on Market: A Little More Breathing Room

Active listings were down from November, but up a healthy 12.9% from last year, giving buyers more options than they had in December 2024. Homes also sat on the market a little longer, with the average days on market climbing to 29 days. This slower pace allows buyers to be more deliberate and less frantic in their decision-making.

Mortgage Rate Roundup

Here's some news to warm your winter spirits! As of mid-January 2026, the average 30-year fixed-rate mortgage has fallen to 5.8% APR [1]. That's the lowest it's been in over a year! This dip in rates could be the encouragement needed to bring more buyers into the market for the spring season.

2025 Year in Review: The Year of Normalization

Looking back at 2025 as a whole, the theme for the Montgomery County housing market was a return to normalcy. The frenzy is over, and a more balanced market has emerged.

• Steady Appreciation: The median sold price for the entire year was $461,175, a respectable 2.48% increase over 2024.
• Consistent Sales: We saw 8,698 homes sold in 2025, a slight 1.55% increase from the previous year.
• A Slower Pace: The average days on market for the year was 24, a small increase from 22 days in 2024, reflecting a less frenzied market.

This trend was mirrored on the national stage, where the 2025 housing market was characterized by rising inventory and a flattening of price growth, creating a more sustainable and balanced environment for both buyers and sellers.

The Bottom Line: A Balanced End to a Balanced Year

So, what's the final verdict on the Montgomery County housing market for 2025? It was a year of finding equilibrium. The market has cooled, but it certainly hasn't frozen over. Sellers are still getting strong prices, and buyers have more negotiating power than they've had in years. It's a market where strategy and knowledge matter more than ever.

As we head into 2026, the combination of lower interest rates and a more balanced market sets the stage for a healthy and active spring. It's a great time to be thinking about your next move.