April 21 2025

Reef Daily

Reef Daily | April 21 2025

Housing Market Update

Latest Market Data (April 21, 2025) The housing market continues to show signs of stabilization with modest growth forecasts. According to newly released data, 44% of home sellers are now offering concessions to buyers in the first quarter of 2025, approaching the record high of 45.1% observed at the beginning of 2023. This trend coincides with housing supply reaching a five-year high, creating more favorable conditions for buyers. In Seattle specifically, an impressive 71% of sellers are offering concessions, marking the highest percentage among metropolitan areas analyzed. This shift comes as economic uncertainty has led to approximately 13% of pending home sales being canceled in March.

Despite these concessions, experts maintain a stable outlook on home prices. The latest forecasts released today indicate continued, albeit slower, price growth ranging from 1.3% to 3.5% for the remainder of 2025. J.P. Morgan Research anticipates a 3% rise, Fannie Mae projects a slightly more optimistic 3.5% increase, while the Mortgage Bankers Association offers a more conservative 1.3% growth prediction.

Mortgage Rates

Current rates as of April 21, 2025:

Type	Today's Rate	Last Week's Rate
30-year fixed	6.89%	6.86%
15-year fixed	6.12%	6.08%
5/1 ARM	6.19%	6.01%

Notable Transactions

Commercial Highlights CIP Real Estate purchased the 422,136-square-foot Imeson Commerce Center in Jacksonville, Florida, for $53,750,000 ($127 per square foot) today. Constructed in 2023, this Class A industrial building is strategically located in the master-planned Imeson Park adjacent to Jacksonville's port section and is 100% leased to RoadOne, North America's largest independent intermodal logistics provider. CIP Real Estate has announced this acquisition marks the beginning of their expansion in Jacksonville, with another pending industrial park acquisition scheduled to close in October 2025.

In New York City, an office building near St. Patrick's Cathedral traded for approximately $15 million, while the Trump Organization signed a long-term lease with SA Hospitality.

In Florida, several major transactions closed in the past 24 hours, including the sale of a manufacturing plant at 10950 Belcher Road S. in Pinellas Park for $22,700,000, representing a significant increase from its previous sale price of $6,112,000 in December 2018.

Regional Activity In the Southeast, industrial real estate continues to show strong momentum with CIP Real Estate expanding its portfolio. The company expects its Southeast industrial portfolio to exceed 3.7 million square feet by the end of 2025, with its national portfolio projected to total over 11 million square feet.

In the Orlando area, a Dellagio Moor home at 8304 Via Vittoria Way sold on April 17 for $1,370,000. The 3,858 square-foot home features four bedrooms and four-and-a-half baths.

In the Northeast, Union County, New Jersey reported 27 home transfers between April 14 and April 20, with the median sale being a 2,919-square-foot home in Hillside that sold for $650,000.

Market Indicators

Inventory Trends Housing supply has reached a five-year high according to data released today, contributing to the increased prevalence of seller concessions. This shift in inventory levels is creating more options for buyers and moderating price growth in many markets.

Appraisal Challenges A newly identified trend in the appraisal industry is impacting split-level home valuations. Recent data indicates that inconsistent classification of lower levels as either basement space or above-grade living area is creating significant valuation discrepancies, in some cases resulting in $40,000 or more in appraised value differences for identical properties. This presents challenges for both sellers and buyers in markets with a high concentration of split-level homes.

Regional Developments

Southeast Industrial real estate in Florida and the broader Southeast region continues to show strength, with CIP Real Estate's Jacksonville acquisition highlighting ongoing demand for logistics and distribution facilities. The company is also starting construction on a 330,000-square-foot industrial project in Tampa, which will increase its total Florida portfolio to more than 1.8 million square feet.

West San Diego has implemented new regulations banning rent algorithms over price collusion concerns, joining other cities in regulating AI-driven rental pricing tools. This regulatory shift could impact multifamily owners' pricing strategies in competitive markets.

Midwest New U.S. steel and aluminum tariffs announced today are expected to raise construction costs and potentially slow multifamily development in fast-growing markets like Milwaukee, Oklahoma City, and Memphis. Developers in these regions may face increased materials costs in upcoming projects.

Regulatory Updates The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has announced that effective December 1, 2025, new reporting requirements will be implemented for non-financed residential real estate transfers to combat money laundering. This regulation will apply to residential real estate transactions in the United States and all territories, with certain exemptions. The primary reporting person, typically the individual who prepares the closing or settlement statement, will be required to file a Real Estate Report electronically with FinCEN.

Sources

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