April 09 2025

Reef Daily

Reef Daily | April 09 2025

Housing Market Update

Latest Market Data (April 9, 2025) William Pitt-Julia B. Fee Sotheby's International Realty released their Q1 2025 market report yesterday, showing significant growth across multiple housing markets. Closed dollar volume in single family home sales rose considerably above Q1 2024, with increases ranging from 3% in Hartford County to 19% in Fairfield County and 37% in Columbia County. Most territories are firmly ahead in closed units year-to-date, with only a handful of areas either flat or slightly behind last year.

The report indicates that median sale prices continue to rise year-over-year across all markets, driven by an ongoing imbalance between supply and demand. Despite economic uncertainty at national and global levels, housing remains resilient, with sellers still receiving multiple bids in competitive environments.

Mortgage Rates

Current rates as of April 9, 2025:

Type	Today's Rate	Last Week's Rate
30-year fixed	6.64%	6.72%
15-year fixed	5.94%	6.01%
5/1 ARM	5.77%	5.83%

Notable Transactions

Commercial Highlights A church purchased a former gym facility at 1900 Del Paso Road in North Natomas for $6.5 million. The 42,000-square-foot building on 3.44 acres was sold by Store Master Funding VII LLC (affiliated with Service Properties Trust) to Mehrizi Properties LLC. The transaction closed on March 31, 2025, with the property being sold for the same price the seller paid in 2015 ($6.5 million).

Plumbers and Gasfitters Union Local 34 purchased a new headquarters and training center at 3020 Denmark Ave. in Eagan for $8.425 million. The union bought the vacant 58,645-square-foot Class A office showroom from an Eagan investment entity. The property includes a building completed in 1998 and newly renovated, as well as a 6.23-acre site.

S.J. Computers, a computer tech support and refurbishing company in Eagan, has paid $6.73 million for a larger 89,951-square-foot office, production, and warehouse facility at 1200 Trapp Road.

Regional Activity The Lowndes law firm announced it had added Jason Williams, a former Shutts & Bowen LLP partner, as an Orlando, Florida-based shareholder in its commercial real estate department.

Market Indicators

Inventory Trends The latest market report from William Pitt-Julia B. Fee Sotheby's International Realty indicates that new listings taken slipped behind this quarter versus last year in some territories like New London and Litchfield Counties, while staying relatively flat in others like Westchester, Fairfield, and New Haven Counties. Total active inventory remains ahead in several areas but has fallen behind in a few including Fairfield County.

Regional Developments

South In New Orleans, the real estate market is facing challenges due to an insurance crisis. While the price per square foot has decreased as vacancy rates have increased, insurance costs have significantly impacted investors. The market is expected to face additional challenges in the next 12 months as five-year balloon payments at 4-5% are set to increase. Home values have remained relatively consistent in certain areas, though the condo market has been hit particularly hard.

Northeast/New England The William Pitt-Julia B. Fee Sotheby's International Realty report highlighted that despite economic uncertainty, buyer demand remains strong in the Northeast. Sellers in Connecticut, Massachusetts, and New York counties are still enjoying market conditions where they can maximize property values. The report suggests optimism for increased activity in the coming months, with buyer demand and improving inventory levels setting the stage for a busy season ahead.

Midwest According to Transwestern research, the Eagan, Minnesota area continues to attract steady investment, with building sales activity remaining strong. Since 2024, 14 office and flex sales transactions have occurred in Eagan, accounting for nearly 20% of total suburban activity and nearly 30% of total suburban sales volume in the region.

Sources

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