Reef Daily | February 24 2025

Housing Market Update

Latest Market Data (February 24, 2025)

• Inventory Trends: Nationwide housing inventory increased 0.3% week-over-week, marking a 28.7% year-over-year rise. This expansion reflects increased seller activity amid softening demand.
• Builder Confidence: The NAHB/Wells Fargo Housing Market Index fell to 42 in February, a 5-point monthly decline driven by tariff-related cost pressures and elevated mortgage rates.
• Regional Sales Activity:
  • Middlesex County, NJ: 64 homes sold between February 17–23, with a median sale of $526,000 for a 1,241 sq ft property in New Brunswick.
  • Essex County, NJ: 36 transactions closed in the same period, led by a $705,000 median sale for a 3,780 sq ft home in Newark.

Construction Activity

• Multifamily housing starts declined 11.0% month-over-month but rose 2.3% year-over-year, reflecting cautious developer sentiment amid rising construction costs.

Mortgage Rates

Current Rates as of February 24, 2025

Type	Today's Rate	Last Week's Rate
30-year fixed	6.90%	6.92%
15-year fixed	6.19%	6.21%
5/1 ARM	6.20%	6.30%

Rates dipped marginally amid stable Treasury yields, though persistent inflation concerns limit downward momentum.

Notable Transactions

Regional Activity

• Northeast:
  • Edison, NJ: A 1,590 sq ft home on Brower Ave sold for $1,050,000 ($660/sq ft), the highest-priced residential transaction in Middlesex County.
  • Livingston, NJ: A 2,529 sq ft property on Tremont Terrace fetched $2,370,000 ($937/sq ft), signaling sustained demand in affluent suburbs.
• South:
  • Sarasota County, FL: Median condo prices fell 17.4% YoY to $347,000, with inventory reaching an 8.5-month supply—firmly a buyers’ market.

Market Indicators

Inventory Trends

• Active listings surged 36% year-over-year in Seattle and 50% in King County, WA, though national sales volume remains constrained by affordability challenges.

Economic Sentiment

• The S&P Global Flash U.S. PMI Composite Output Index fell to 50.4, a 17-month low, signaling slowing economic growth and dampened business optimism.

Regional Developments

Northeast

• New Jersey: Median prices in Middlesex and Essex counties held steady, with premium properties in Edison and Livingston commanding >$900/sq ft.

South

• Sarasota-Manatee, FL: Condo inventory swelled to an 8.5-month supply in Sarasota, driving median prices down 17.4% YoY. Single-family home prices dipped 1% in Sarasota but fell 8.6% in Manatee County.

Midwest

• Rochester, NY: Foreclosure auctions scheduled for 24 properties this week, concentrated in lower-income neighborhoods, reflecting lingering post-pandemic financial strain.

Sources

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