March 18 2025

Reef Daily

Reef Daily | March 18 2025

Housing Market Update

Latest Market Data (March 18, 2025) US housing starts rose in February by more than forecast after a weather-related plunge, increasing 11.2% to an annualized rate of 1.5 million, according to government data released today. The median estimate of economists had called for an annualized 1.39 million starts. This increase was led by a pickup in single-family home construction, indicating that builder incentives are helping to underpin demand.

Mortgage Rates

Current rates as of March 18, 2025:

Type	Today's Rate	Last Week's Rate
30-year fixed	6.74%	6.72%
15-year fixed	6.00%	6.00%
5/1 ARM	6.13%	6.14%

Mortgage interest rates were mixed compared to last week according to Bankrate data. The benchmark 30-year fixed mortgage increased slightly by 0.02%, while the 15-year fixed rate remained flat at 6.00%. The 5/1 ARM saw a modest decrease of 0.01%, while jumbo mortgage rates climbed 0.14%.

Notable Transactions

Commercial Highlights Berkshire Hathaway Inc., led by Warren Buffett, is in talks to sell its real estate brokerage business, HomeServices of America, to New York-based Compass Real Estate. The transaction would include approximately 820 offices and 270 franchises under the Berkshire umbrella.

Kane Realty has sold its Peace Apartments in Downtown Raleigh, where Publix is located, to Cortland for $152 million. The property will be rebranded as Cortland Glenwood South. This significant transaction encompasses residential units, a parking structure, and the Publix retail space.

ShopOne Centers REIT announced yesterday the acquisition of two open-air retail shopping centers in Pennsylvania in collaboration with joint venture partners Pantheon and a global institutional investor. The properties acquired are Goodnoe's Corner in Newtown, PA, and Village Center in Bensalem, PA.

Slate Grocery REIT announced yesterday its distribution for March 2025, declaring a distribution of U.S.$0.072 per class U unit, or U.S.$0.864 on an annualized basis.

Regional Activity In North Carolina, the Wilmington real estate market is showing signs of increased activity as the selling season approaches. Current listings in the Wilmington area have increased significantly, with 3,183 homes on the market—up about 75-80 from last week, representing a larger jump than the typical 20-30 unit weekly increase observed in previous weeks.

Market Indicators

Retail Impact on Commercial Real Estate Forever 21 announced yesterday its plans to permanently close all of its approximately 350 U.S. stores as the fast-fashion retailer pursues bankruptcy for a second time. The company cited competition from foreign-based online sellers, rising costs, and shifting consumer trends as factors for the filing. The closures will likely impact commercial real estate, particularly shopping malls where Forever 21 often serves as an anchor tenant.

Economic Influence A study released yesterday indicates that March Madness may cause a $20 billion loss to the US Economy in "lost productivity." However, this is balanced by increased sales for bars and restaurants, especially in the Midwest, where many eateries have faced tough times this winter and are expecting a welcome boost from the tournament.

Sources

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