January 17 2025

Reef Daily

Reef Daily | January 17 2025

Housing Market Update

Latest Market Data (January 17, 2025)

Homebuyer demand dropped 11% in early January compared to previous month
Pending home sales declined 8.4% year-over-year
New listings fell 3.6% year-over-year, steepest decline since September 2023
Housing starts surged 15.8% in December to 1.499 million annual rate
Building permits declined 0.7% in December to 1.493 million
Housing completions decreased 4.8% to 1.544 million in December

Construction Activity Construction data shows mixed signals with strong starts but declining completions. Housing starts significantly beat expectations in December, jumping 15.8% to a 1.499 million annual rate. However, building permits edged down 0.7%, and housing completions fell 4.8%.

Mortgage Rates

Current rates as of January 17, 2025:

Type	Today's Rate	Last Week's Rate
30-year fixed	7.11%	7.03%
15-year fixed	6.39%	6.34%
5/1 ARM	6.60%	6.55%

Future Forecasts JPMorgan analysts believe consumers have entered an "acceptance phase" regarding interest rates, expecting modest increases in existing home sales from current 40-year lows.

Notable Transactions

Commercial Highlights

CBRE Group announced acquisition of Industrious National Management Company
Major Austin office property sold for $521.8 million
Two restaurant properties in Springfield sold for over $1 million each - former Roosters ($1.3M) and White Castle properties

Regional Activity

Northeast: Significant real estate activity in Berkshire region with multiple properties sold ranging from $100,000 to $5.2 million
Midwest: Dayton market showing strong momentum with busiest Q4 in a decade
South: Austin commercial market demonstrates strength with record-breaking office sale
West: Southern California market impacted by wildfires, with pending sales down 4%

Market Indicators

Inventory Trends New listings saw their steepest decline since September 2023, dropping 3.6% year-over-year.

Buyer Demographics Homebuyer demand has weakened across multiple regions, with significant decreases in the Northeast, Midwest, and South due to weather conditions.

Regional Developments

Northeast: Buffalo, NY named hottest housing market for second consecutive year
South: Dayton area expecting robust market through 2025 despite inventory challenges
West: Los Angeles market experiencing disruption due to wildfires, with increased demand for rental properties

Sources

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