March 14 2025

Reef Daily

Reef Daily | March 14 2025

Housing Market Update

Latest Market Data (March 14, 2025)

The housing market continues to exhibit mixed signals across various regions. Nationwide, home prices rose by 3% year-over-year in February, with the Midwest leading price growth. Milwaukee saw a remarkable 20% increase in median sale prices, followed by Detroit at 12.5% and Nassau County at 11.7%. Conversely, Texas and Florida metros experienced price declines, with Austin (-2.7%), Tampa (-1.9%), and San Antonio (-1.7%) leading the downward trend.

Inventory levels are showing signs of improvement. Active listings nationwide increased by 10.7% year-over-year and 1.3% month-over-month, reaching their highest level since June 2020. Cities such as Oakland (+37.5%), Denver (+29.8%), and Anaheim (+26.9%) saw significant inventory growth, while Detroit (-6.7%), Newark (-6.4%), and Milwaukee (-3.7%) experienced declines.

Pending sales remain sluggish overall, but certain regions are seeing positive momentum. Los Angeles (+6%), Anaheim (+5.2%), and Columbus (+0.6%) reported increases in pending sales, while Miami (-16.6%), Minneapolis (-16.1%), and Philadelphia (-16.1%) faced sharp declines.

Mortgage Rates

Current Rates as of March 14, 2025

Type	Today's Rate	Last Week's Rate
30-year fixed	6.68%	6.66%
15-year fixed	5.94%	5.94%
5/1 ARM	6.08%	6.05%

Notable Transactions

Commercial Highlights

In Detroit, active listings dropped by 6.7% year-over-year in February—the largest decline among major metros—while prices rose sharply by 12.5%, signaling strong demand for commercial properties in this region. Similar trends were observed in Milwaukee and Cleveland.

In Austin’s residential market, homes priced between $500,000 and $600,000 accounted for the largest share of active listings (541 homes), with an activity index of 37%, indicating robust buyer interest despite longer average days on market (75 days).

Regional Activity

Northeast Pending sales fell sharply in Philadelphia (-16.1%) but rose modestly in Nassau County (+11.7%). Inventory levels remain tight across most Northeast metros.

Midwest The Midwest continues to outperform other regions in terms of price growth and affordability. Milwaukee (+20%), Detroit (+12.5%), and Cleveland (+11%) led the nation in median price increases.

South Texas and Florida metros saw declining home prices due to surging inventory levels and buyer hesitation amid elevated insurance costs and HOA fees. Austin’s inventory remains strong but homes are taking longer to sell (91 days on average).

West San Diego County reported a significant increase in inventory since January (+1,200 units), providing buyers with more options but maintaining firm prices for now. Oakland experienced a notable rise in new listings (+37%) alongside steady buyer interest.

Market Indicators

Inventory Trends

Nationwide inventory levels rose by over 10% year-over-year as of February, marking the highest levels since mid-2020. However, regional disparities persist: while cities like Oakland saw substantial growth (+37%), others like Detroit experienced declines (-6.7%).

Buyer Demographics

Mortgage applications surged by 11% week-over-week as of March 13, driven by refinance applications (+8%) and purchase applications (+4%). Google searches for "homes for sale" increased by 10%, reflecting heightened buyer interest heading into spring.

Regional Developments

Northeast Philadelphia’s housing market faces challenges with declining pending sales (-16%) despite rising inventory levels. Nassau County remains a bright spot with double-digit price growth (+11%) driven by strong demand for suburban properties.

Midwest The Midwest continues to shine as an affordable yet dynamic region for homebuyers and investors alike. Milwaukee’s housing market is particularly noteworthy for its rapid price appreciation (+20%) coupled with declining inventory levels (-3%).

South Florida’s housing market is grappling with rising insurance costs and unsold inventory piling up amid intensifying natural disasters. Texas metros like Austin are experiencing similar issues with slower sales despite ample supply.

West San Diego’s growing inventory provides buyers with more negotiating power but has yet to impact median prices significantly. Oakland’s robust new listings growth (+37%) supports its reputation as a competitive market for both buyers and sellers.

Sources

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