April 22 2025

Reef Daily

Reef Daily | April 22 2025

Housing Market Update

Latest Market Data (April 22, 2025)

U.S. home prices increased just 0.2% month-over-month in March 2025, marking the slowest pace of growth since December 2022
Year-over-year price growth slowed to 4.6%, down from 5.1% in February, representing the 11th consecutive month of decelerating annual growth
20 of the 50 largest metropolitan areas experienced price decreases on a seasonally adjusted basis
Columbus, Ohio saw the largest price decline at -0.7%, followed by Denver and San Jose, both at -0.6%
San Francisco experienced the strongest growth with prices up 2.7%, followed by Nassau County, NY (2.6%) and Milwaukee (1.7%)

Mortgage Rates

Type	Today's Rate	Last Week's Rate
30-year fixed	6.93%	6.97%
15-year fixed	6.16%	6.20%
5/1 ARM	6.16%	6.18%

Notable Transactions

Commercial Highlights According to newly released data, home-sale transactions increasingly include seller concessions to attract buyers in today's shifting market. 44.4% of U.S. home-sale transactions in Q1 2025 included seller concessions, up from 39.3% during the same period last year

Regional Activity In the Northeast, Nassau County, NY showed significant price growth of 2.6% month-over-month according to today's Redfin report, making it one of the top performing markets nationwide

In the Midwest, Milwaukee posted a strong 1.7% monthly price increase, while Columbus experienced the nation's largest price decline at -0.7%

In the West, San Francisco led all major metros with a 2.7% monthly price gain, while Denver and San Jose both saw prices fall by 0.6%

Market Indicators

Inventory Trends

Available inventory of unsold homes grew by 17,000 in the past week, representing the largest single-week inventory gain in nearly three years
There are now over 719,000 single-family homes and 220,000 condos unsold on the market nationwide
77,000 new single-family home listings came to market this week, up 1% from the prior week and 12% higher than the same period last year

Buyer Demographics Buyers are gaining negotiation leverage as homes take longer to sell. In the first quarter of 2025, 21.5% of homes sold had both a concession and a final sale price below asking—up from 18.5% a year ago

Contract Cancellations Approximately 52,000 U.S. home-purchase agreements were canceled in March, representing 13.4% of all contracts signed that month. While only slightly higher year-over-year, this marks the third-highest March cancellation rate since 2017

Regional Developments

West Price growth is slowing as homebuying demand fails to keep pace with increasing inventory. Redfin Senior Economist Sheharyar Bokhari notes, "Homes are taking longer to sell and prices are falling in some areas because fear of a broader economic slowdown is pushing many would-be buyers to the sidelines. New tariffs are adding to the economic uncertainty."

Sunbelt Multifamily markets across Sunbelt cities are experiencing elevated vacancy rates and downward pressure on rents following a record year of apartment completions. Nearly 592,000 multifamily units were delivered in 2024—the most in a single year since 1974—with the bulk hitting Sunbelt metros

Northeast High-barrier coastal markets like Boston have shown greater stability in the multifamily sector compared to Sunbelt regions, benefiting from steadier demand and slower supply pipelines

Sources

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