February 27 2025

Reef Daily

Reef Daily | February 27 2025

We released our February 2025 Reef Report today, you can access it here: reefinsights.com/reports

Latest Market Data (February 27, 2025)

New-home sales fell 10.5% month-over-month to a seasonally adjusted annual rate of 657,000, the lowest since October 2024. The South (-14.8%) and Northeast (-20%) saw sharp declines, while the West posted a 7.7% gain.
Pending home sales dropped 4.6% in January to a record low of 70.6, reflecting weakened buyer demand amid elevated rates.
The median new-home price rose 3.7% year-over-year to $446,300, the highest January figure on record.

Current Rates as of February 27, 2025:

Construction Activity

Buffalo, NY, advanced plans to convert vacant offices into housing, including the $38 million redevelopment of 237–251 Main St. into 100 apartments.

Commercial Highlights

Ascension Parish, LA: Industrial sales surged 19.7% ($47.4M trailing 12-month volume), while retail fell 30% ($9.5M).
Fishers Island, NY: The Crows Nest 2016 Trust sold 1152 Old Mallory Road for $7 million.

Regional Activity

Northeast: Buffalo finalized eminent domain proceedings for Cobblestone District properties, paving the way for redevelopment.
South: Miami’s 105 Lockitt Dr LLC acquired a Jamesport property for $2.1 million.
West: San Francisco’s Veteran Stan LLC purchased 15 Knapp Ave. in Santa Clara County for $292,000.

Inventory Trends

New-home inventory rose to 495,000 units, a 9.0-month supply at current sales rates—the highest since December 2007.
Florida reported 260,000 active listings, nearly triple California’s 96,000. Santa Clara County, CA, saw SFH inventory jump 18% week-over-week to 707 homes.

Northeast

Buffalo’s $400+ million Marine Drive Apartments redevelopment broke ground, adding 686 affordable units.

Midwest

Batavia, NY, solicited proposals to redevelop the historic Brisbane Mansion into a boutique hotel or apartments.

South

The U.S. Court of Appeals upheld Buffalo’s eminent domain claim for fire-damaged Cobblestone District buildings.

West

Silicon Valley’s inventory surge (+18% weekly) coincided with reports of declining price-per-square-foot trends in Tri Valley.

Jobless claims surged to 242,000 for the week ending February 22, exceeding forecasts and marking the highest level since October 2024.
Q4 2024 GDP growth held steady at 2.3%, driven by a 4.2% increase in consumer spending.
Durable goods orders rose 3.1% in January, though gains were concentrated in transportation sectors.

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