January 08 2025

Reef Daily

Reef Daily | January 08 2025

Housing Market Update

Latest Market Data (January 8, 2025) The Lake Houston area showed increased median home sales prices across most ZIP codes, with nearly 64% of homes sold in December falling within the $200,000-$399,999 price range.

Construction Activity The Dodge Momentum Index grew 10.2% in December, with commercial planning increasing 14.2% and institutional planning improving 2.5%. Data center and warehouse planning drove significant growth, with the DMI up 19% compared to the previous year.

Mortgage Rates

Current rates as of January 8, 2025:

Type	Today's Rate	Last Week's Rate
30-year fixed	7.02%	7.01%
15-year fixed	6.34%	6.35%
5/1 ARM	6.42%	6.52%

State variations show New York, California, and Florida with the lowest 30-year rates (6.75%-6.97%), while Alaska, Iowa, and Louisiana have the highest (7.04%-7.10%).

Notable Transactions

Commercial Highlights Finmarc Management has completed a $51 million acquisition of Dulles Corner, an office complex with 620,000 square feet across four buildings near Herndon. The property includes major tenants like Peraton and BlackSky D.C.

Regional Activity The Huntsville commercial real estate market continues to show strong growth, particularly in mixed-use developments like Hays Farm and significant projects in downtown Huntsville.

Market Indicators

Construction Planning Major projects entering planning include:

$1.6 billion Powerhouse 95 data center in Fredericksburg, Virginia
$1 billion Brambleton Data Center at Tech Park in Ashburn, Virginia
$226 million OhioHealth Outpatient Cancer Center in Columbus, Ohio
$220 million county jail in Peoria, Illinois

Regional Developments

South Huntsville's commercial real estate sector shows increased activity driven by population growth and economic development. The market anticipates temporary slowdown in multi-family development due to recent project completions.

Northeast/Mid-Atlantic Northern Virginia office market continues to evolve, with Herndon area showing 24.9% office vacancy rate. The region expects significant growth in data center development, with 80 million square feet of new space planned by 2030.

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.