Modesto Market Update: Is December the Time to Buy or Sell?

As we wrap up 2025, the Modesto real estate market is showing a unique blend of "holiday chill" and steady resilience. While the Central Valley often sees a seasonal slowdown this time of year, current data suggests that both buyers and sellers have significant opportunities if they know where to look.

Here is everything you need to know about the Modesto housing market as of December 20, 2025.

1. By the Numbers: Modesto’s Current Stats

The market has shifted slightly compared to the heat of the summer, with prices stabilizing and inventory offering a bit more variety for those brave enough to house hunt during the holidays.

2. Market Sentiment: A "Balanced" Winter

For the first time in a while, Modesto is leaning toward a balanced market.

• For Buyers: Homes are sitting on the market longer (38 days vs. 27 days last year). This gives you more breathing room to conduct inspections and negotiate repairs without the frantic "bidding war" energy of previous seasons.

• For Sellers: While the median price is up 1.7%, nearly 50% of sales are occurring under list price. This means pricing your home accurately from day one is more critical than ever to avoid a "price drop" later.

3. Mortgage Rates: The 6% Barrier

Mortgage rates have settled into a more predictable range this December, providing some much-needed clarity for financing:

• 30-Year Fixed: Averaging around 6.15% in California.

• 15-Year Fixed: Hovering near 5.68%.

With rates stabilizing, many buyers who were "sitting on the fence" are returning to the market, realizing that the record-low rates of the past aren't coming back anytime soon.

4. Neighborhood Spotlight

Not all zip codes are created equal. If you’re looking in specific areas, keep these trends in mind:

• 95355 (East Modesto): Remains one of the most sought-after areas with typical values around $481,716.

• 95356 (North Modesto): Competitive and slightly higher-priced, with many homes selling near or at list price.

• 95354 (Central/Downtown): Offers more entry-level opportunities, with a median sale price closer to $413,000.

Pro Tip: Look for "stale" listings that have been on the market for 45+ days. These sellers are often highly motivated to close before the new year and may be open to significant concessions or closing cost credits.

Final Thoughts for December

Modesto continues to be an attractive alternative to the Bay Area, offering a high quality of life at a fraction of the cost. Whether you’re looking for a mid-century gem in Collegeview or a modern build in Village One, the December market offers a slower pace that can work to your advantage.