February 19 2025

Reef Daily

Reef Daily | February 19 2025

Housing Market Update

Latest Market Data (February 19, 2025)
The U.S. housing market continues to show resilience amid shifting dynamics. According to the RE/MAX National Housing Report released on February 18, 2025, new listings surged by 53.7% month-over-month in January, while inventory levels rose 5.0% from December and 30.9% year-over-year. The median sales price settled at $422,000, reflecting a 1.8% dip from December but a 5.3% annual increase. Closed transactions rose 6.0% compared to January 2024, marking the fourth consecutive month of year-over-year sales growth. Days on Market increased to 55, up nine days annually, signaling a modest cooling in buyer urgency.

Mortgage Rates

Current Rates as of February 19, 2025

Type	Today's Rate	Last Week's Rate
30-year fixed	6.92%	6.91%
15-year fixed	6.25%	6.23%
5/1 ARM	6.07%	6.12%

Notable Transactions

Commercial Highlights
A mixed-use property at 2424 Main St., Sweet Home, OR, sold for $2.1 million, underscoring investor appetite for strategic suburban assets. Additionally, a 65.35-acre parcel at 42361 Upper Berlin Dr., Lebanon, OR, fetched $1.32 million, highlighting demand for large land holdings.

Regional Activity

Northeast: Burlington, VT, saw active inventory surge 64.1% year-over-year, though supply remains constrained in mid-price segments.
Midwest: Des Moines, IA, reported a 28.4% annual increase in new listings, driven by Gen Z buyers, who comprise 21% of purchasers in affordable markets.
South: Tampa, FL, experienced a 3.5% year-over-year price decline, the largest drop among major metros.
West: Seattle, WA, led the nation in new listings growth at 32.9%, though days on market climbed to 81.

Market Indicators

Inventory Trends
Nationwide inventory rose 30.9% year-over-year, with months’ supply at 2.8, up from 2.1 in January 2024.

Buyer Demographics
Gen Z buyers accounted for 13% of U.S. home purchase applications in 2024, peaking in Midwest markets like Des Moines, IA (21%), where median prices lag the national average.

Regional Developments

Northeast
The Washington, DC, area defied “market crash” speculation, with Arlington, VA, reporting 110 new listings in early February—nearly unchanged from 2024—indicating stable demand despite federal layoffs.

Midwest
Youngstown, OH, and Grand Rapids, MI, saw Gen Z buyers comprise 20% of purchasers, leveraging affordability in markets with median prices below $250,000.

South
Miami, FL, reported the highest months’ supply at 7.2, though the close-to-list price ratio dipped to 92.8%, reflecting negotiability in luxury segments.

West
Honolulu, HI, faced a 5.4 months’ supply, with median prices stabilizing near $800,000 despite slower sales activity.

Economic Indicators

The S&P 500 closed at a record 6,129.58 on February 18, buoyed by tech gains, while the 10-year Treasury yield edged up to 4.52%. Southwest Airlines announced a 15% reduction in corporate staff, its first major layoffs in 53 years, signaling recalibration in travel-dependent sectors.

Sources

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