Real estate markets are entering a more stable phase as 2026 approaches. The December 2025 Market Report highlights how capital markets, interest rates, and investment activity have shifted over the past year. The changes indicate renewed confidence and improved conditions for disciplined investors.
Debt capital is active again. Loan originations increased by approximately forty eight percent year over year through Q3 2025. Borrowing costs have eased as interest rates declined by roughly fifty basis points over the past year, creating a more competitive lending environment. These dynamics are supported by updated benchmarks such as SOFR at 4.04 percent and the ten year Treasury at 4.01 percent.
Equity markets show similar movement. Investment sales rose nearly twenty percent year over year through Q3 2025. Multifamily and industrial assets continue to lead investor interest, driven by their strong income profiles and durable demand patterns. This renewed activity demonstrates cautious optimism among investors who are once again prioritizing high quality, fundamentals based opportunities.
For investors, the message is clear. The market is improving in structured, measurable ways rather than through rapid speculation. Interest rates, spreads, and capital flows are all aligning to create a healthier investment landscape. This environment rewards disciplined underwriting and long term thinking.
The full report provides a detailed view of
LTV and DSCR standards across agency lenders
Rate spreads for five, seven, ten, and fifteen year terms
Treasury benchmarks
Debt and equity market behavior
Sector performance indicators
Each metric offers insight into how the next phase of the cycle may unfold.
You can access the complete December 2025 Market Report below.
