February 28, 2025 Financial and Housing Market Replace

February 28, 2025

• The Realtor.com® economics workforce video replace offers you the related financial and actual property info it’s good to know every week each Friday to navigate the housing market as a homebuyer, dwelling vendor, or trade skilled.
• For the week ending February 28, Realtor.com® Chief Economist Danielle Hale discusses the most recent financial information, in addition to mortgage charges, dwelling costs, new and pending dwelling gross sales, and housing stock. 
• Financial information together with GDP, private revenue, and shopper confidence recommend financial well being, however rising warning amongst shoppers.
•  Mortgage charges eased for a sixth week
• Case Shiller confirmed that gross sales costs continued to achieve between 4 and 5% to finish 2024 though dwelling itemizing costs had been flat to decrease on this interval. 
• The shock within the Realtor.com February Housing Traits report, nonetheless, was an uptick in worth reductions as a share of lively listings. Stock development continued, however newly listed properties elevated by solely half as a lot as in January and weekly information confirmed softening new listings development because the month progressed, suggesting waning vendor enthusiasm. 
• Amongst transaction indicators, new dwelling gross sales declined in January and pending dwelling gross sales additionally fell.  Danielle shares her tackle what this implies for the housing market and gross sales within the subsequent few months.
• Lastly, many are curious in regards to the housing market results of modifications within the Federal workforce. Within the Realtor.com February Housing Traits report, we ranked markets by the share of Federal workers amongst all payroll jobs to have a lens via which to observe for modifications in upcoming months. 

VIDEO TRANSCRIPT:

• I’m Danielle Hale, Chief Economist at Realtor.com®. I’ve simply returned from the Worldwide Builders Present in Las Vegas, the place I shared my housing outlook and insights on customized homebuilding. This week I’m going to debate the most recent financial information, in addition to mortgage charges, dwelling costs, new and pending dwelling gross sales, housing stock, and most significantly–what it means for you.
• Revised information on GDP confirmed slower however ongoing financial development within the 4th quarter pushed by shopper spending. Enterprise funding slowed, maybe attributable to election-related uncertainty. 
• January information on private revenue and spending confirmed upticks in each revenue and the speed of financial savings whereas the Fed’s most popular inflation gauge steadied.
• Mixed with shopper confidence which confirmed a 3rd month-to-month drop in February, information recommend that customers are rising extra cautious over considerations in regards to the outlook.
• In opposition to the considerably unsure backdrop, mortgage charges eased for a sixth week, dipping to the bottom stage of 2025, however are nonetheless greater than half a % above September’s low.
• In housing information, Case Shiller confirmed that gross sales costs continued to achieve between 4 and 5% to finish 2024 though dwelling itemizing costs had been flat to decrease on this interval. Energy was seen in New York, Chicago, and Boston, whereas Tampa noticed costs fall.
• An identical regional pattern continued into February with asking costs exhibiting essentially the most power within the Northeast and Midwest. The most important shock from the Realtor.com February Housing Traits report, nonetheless, was an uptick in worth reductions as a share of lively listings. 
• We not solely noticed the very best share of February reductions going again to 2017, we noticed a seasonally uncommon enhance in worth reductions from January. 
• Stock development continued, however newly listed properties elevated by solely half as a lot as in January and weekly information confirmed softening new listings development because the month progressed. 
• Amongst transaction indicators, new dwelling gross sales declined in January and pending dwelling gross sales additionally fell. Each new and pending dwelling gross sales are counted when contracts are signed and recommend that dwelling gross sales or closings will sluggish within the subsequent one to 2 months. Whereas gross sales slowed throughout the board, new building properties, which have comprised a bigger than normal share of stock and gross sales, outperformed. New dwelling gross sales registered on par with a tempo close to what was typical in 2022 and 2023, whereas the pending dwelling gross sales index hit its lowest stage since counting started in 2001–suggesting this pattern will proceed. 
• It’s nonetheless very early in 2025, however the housing market is now actually exhibiting the slowdown we anticipated from the late 2024 spike in mortgage charges. The aid in mortgage charges that we’re seeing now’s anticipated to convey some consumers again to the market, however dwelling gross sales will probably not register this pickup till the late spring or early summer season.
• One final word, many are curious in regards to the housing market results of modifications within the Federal workforce. We’ve not but seen an influence, however given the recency of the modifications, I wouldn’t count on to see something within the information simply but. Within the Realtor.com February Housing Traits report, we ranked markets by the share of Federal workers amongst all payroll jobs to have a lens via which to observe for modifications in upcoming months.
• Yow will discover all the main points, together with full stories and our housing information for obtain, at realtor.com/analysis.  You can too observe us on X (previously twitter) for actual time updates. And instagram for graphics.

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