February 21 2025

Reef Daily

Reef Daily | February 21 2025

Housing Market Update

Latest Market Data (February 21, 2025)

Existing-home sales declined 4.9% month-over-month in January to a seasonally adjusted annual rate of 4.08 million units, though sales rose 2.0% year-over-year for the fourth consecutive month. The median existing-home price reached a record $396,900, up 4.8% from January 2024, marking the 19th straight month of annual price gains. Inventory grew to 1.18 million units (3.5 months’ supply), a 3.5% monthly increase but still below balanced market levels.

Foreclosure starts surged 30% in January, driven by expiring VA loan moratoriums, though distressed sales accounted for just 3% of transactions.

Construction Activity

U.S. housing starts plummeted 9.8% in January to 1.37 million units, reflecting builder caution amid elevated material costs and mortgage rates. This follows a 16.16% annualized inventory growth in December 2024, outpacing the 9.28% sales increase during the same period.

Mortgage Rates

Current Rates as of February 21, 2025

Type	Today's Rate	Last Week's Rate
30-year fixed	6.90%	6.92%
15-year fixed	6.19%	6.21%
5/1 ARM	6.20%	6.30%

Mortgage applications fell 5.5% weekly to their lowest level since January 2025, as buyers await improved affordability.

Notable Transactions

Commercial Highlights

Lenox, MA: 165 Kemble Street #10 sold for $2.3M.
Hudson, NY: 9 Willard Street transacted at $1.815M.
New Lebanon, NY: 123 Cemetery Road purchased by Church of Dawn’s Light for $900K.

Regional Activity

Northeast: 137 Catskill View Road (Claverack, NY) sold for $2.125M, the region’s top residential transaction.
West: 183 Pine Road (Otis, MA) acquired by 183 Pine Rd LLC for $950K.
South: 220 Yokun Road (Richmond, MA) purchased for $595K.

Market Indicators

Stock Market Performance

Dow Jones: Fell 1.0% (-450 pts) to 44,176.65.
S&P 500: Declined 0.4% to 6,117.52.
Nasdaq: Dropped 0.5% to 19,962.36.

Walmart led losses (-6%) after issuing cautious 2026 guidance, dragging retail stocks lower. Energy (+1.8%) outperformed amid natural gas price surges.

Inventory Trends

Active listings rose 3.5% monthly nationally, with the Northeast seeing a 4.2% annual sales increase despite a 5.7% monthly dip.

Regional Developments

Northeast

Massachusetts: 52-54 Crane Avenue (Dalton) sold for $335K.
Connecticut: 39 Brinton Hill Road (Salisbury) transacted at $1.395M.
New York: 1063 Route 217 (Claverack) purchased for $540K.

Midwest

Mortgage Delinquencies: Rose to 3.1% in Q4 2024, signaling regional economic strain.

South

Texas: Austin’s median price hit $550K, up 8% YoY, despite slowing sales.

West

California: Bay Area inventory grew 18% monthly, though prices held firm at $1.2M median.

Sources

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