Real Estate Market Update - MARCH 7, 2025

Real Estate Market Update

I will be updated our Local Market this afternoon. Please check back.

The US real estate market is shifting in favor of buyers, according to recent data from Redfin. Key findings include:

• New home sales are down 2% due to increased supply
• Inventory is up 5% over the same time last year
• Homes are selling for nearly 2% less than the listing price
• The median home price appreciation in 2024 was 4.1%, the slowest growth in over five years

Trends and Insights

• Sellers are becoming more desperate, with deals failing to close at the highest rate since 2017
• The Sunbelt region, particularly Florida, is experiencing a buyer's market due to an abundance of new construction
• The Northeast region still has a seller's market in some areas, but inventory levels are expected to even out in 2025
• Experts predict that 2025 may be the last year of an inventory shortage

Market Outlook

• The real estate market is expected to continue shifting in favor of buyers
• Mortgage rates have dropped to their lowest level since mid-December, but demand remains low
• The FHA loan delinquency rate has risen to 11.3%, but the overall mortgage landscape remains healthy

Sources:

• Redfin
• CNBC
• Benzinga
• Yahoo Finance