February 25 2025

Reef Daily

Reef Daily | February 25 2025

Housing Market Update

Latest Market Data (February 25, 2025)
The Census Bureau reported new home sales for February 2025 at 0.680 million, slightly below the forecast of 0.698 million, signaling potential cooling in new construction demand despite persistently high prices. Nationwide housing inventory continues its upward trajectory, with active listings up 16.8% year-over-year to 1.18 million units as of January 2025, though this remains below pre-pandemic levels.

Construction Activity
Apple announced plans to invest $500 billion over four years in U.S. infrastructure, including a new 250,000-square-foot AI server production facility in Houston. This follows heightened commercial construction activity in tech hubs like New York City, where AI-focused office space demand continues rising alongside $3 million in municipal investments for the NYC AI Nexus.

Mortgage Rates

Current Rates as of February 25, 2025

Type	Today's Rate	Last Week's Rate
30-year fixed	6.93%	6.97%
15-year fixed	6.27%	6.27%
5/1 ARM	6.23%	6.26%

Notable Transactions

Commercial Highlights

Barings finalized its acquisition of Artemis Real Estate Partners, integrating $11 billion in assets across multifamily, industrial, and senior housing sectors.
First Landing Investments LLC sold 11 Wilson Street (Hopkinton, MA) to Royal Realty Investment Group LLC for $615,000, part of a portfolio reshuffle involving neighboring properties.

Regional Activity
Northeast:

5 Autumn Ridge Drive, Unit 42 (Hopkinton, MA) sold for $912,500, reflecting continued premium pricing in Greater Boston suburbs.
South:
Thurmond Lake (SC) saw two luxury listings exceeding $1 million, contributing to a regional market valuation increase to $1.5 billion.

Market Indicators

Consumer Confidence
The Conference Board’s Consumer Confidence Index fell sharply to 98.3 in February, its largest monthly decline since August 2021, driven by inflation concerns and uncertainty around tariff policies.

Equity Markets

S&P 500 closed at 5,983.25 (-0.5%), while the Nasdaq Composite dropped 1.2% to 19,286.9 amid tech sector volatility.
Real estate investment trusts (REITs) gained 0.8% as bond yields softened, with the 10-year Treasury note dipping to 4.4%.

Regional Developments

Midwest:

Chicago Fed’s National Activity Index slipped to -0.03 in January, indicating subdued manufacturing output despite strong auto sector performance.
West:
Phoenix reported a 0.3% year-over-year price decline, contrasting with national trends as inventory accumulates.

All currency figures in USD. Regional classifications follow U.S. Census Bureau boundaries.

Sources

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