February 2025 Real Estate Market Update

Welcome to our February 2025 real estate update! In this edition, we’re breaking down the latest trends from across the housing market, with insights on everything from price fluctuations and inventory changes to regional updates. Whether you're buying, selling, or just staying informed, we’ve got the details you need to navigate the evolving market and make smart decisions.

February Financial Market News

• "Egg-flation" hits hard: Egg prices have skyrocketed, with the USDA predicting a 41% increase in 2025 due to a bird flu outbreak affecting 18.8 million egg-laying hens.
  
  
• Trump's 25% tariffs on Canada and Mexico took effect on March 4. Canada responded with tariffs on $107 billion in U.S. goods, while Mexico plans to announce its own tariffs soon.
  
  
• Home Depot sees its first sales increase in two years. Q4 same-store sales rose 0.8% (1.3% in the U.S.), beating expectations. Signs point to a potential rebound in the home improvement market.
  
  
• The current annual inflation rate is 3% - still above the Fed's 2% target.
  
  

February National Housing Market News

• Single-family rental homes are now 20% more expensive than typical apartments, the largest price gap ever recorded by Zillow, according to their December 2024 rental market report.
  
  
• Climate risks and rising insurance costs could cut $1.5T in property value, with the Sun Belt hit hardest. 55M Americans are expected to relocate over the next 30 years.
  
  
• In February, 16.8% of homes had price cuts, the highest since 2016, as sellers adjust to high mortgage rates and slow-moving inventory.
  
  
• 45 of the top 50 U.S. metros had more homes with price cuts compared to February 2024, with Denver, Charlotte, and Tucson showing the biggest jumps.
  
  
• Despite longer selling times, homes are still selling 11 days faster than before the pandemic.
  
  

February National Housing Trends

• According to Realtor.com, the top 3 places for first-time home buyers to buy a home are Harrisburg, PA (Median Price: $140,000), Rochester, NY ($129,900), and Villas, FL ($236,950).
  
  
• Buyers are making larger down payments. The typical U.S. down payment is now 16.3% of the purchase price ($63,188), up from 15% a year ago.
  
  
• Wildfires drove up rental prices in California, with increases of 12%, 25.1%, and even 33% for some rentals.
  
  
• A recent survey shows that two-thirds of Americans aim to own a home, with 59% believing it’s achievable. Half see homeownership as key to building long-term wealth.
  
  

February Regional Housing Market News

Curious about how the housing market is shifting in your area? Here’s a closer look at the latest trends across different regions of the U.S. From price changes to inventory updates, we’ve got the insights you need to stay ahead in your local market.

Northeast Region Housing News:

• The Northeast is seeing a rise in new home construction, with overall permits up 14% and single-family permits up 19.2% since December 2023.
  
  
• The median asking rent for units of all sizes across New York City reached $3,382. This is an increase of 5.6% year-over-year and 0.6% month-over-month.
  
  
• Maine's housing market remains strong. Hancock County's median price rose to $414K, with sales up 14.5%, but inventory remains tight.
  
  
• Manchester, New Hampshire, is the number one hottest housing market in the U.S., attracting buyers with its convenience, character, and tax-free living.
  
  

Midwest Region Housing News:

•  Grand Traverse City, Michigan commissioners allocated over $285K in federal grants to four non-profits tackling housing and homelessness. All money needs to be spent by June 30.
  
  
• Mankato, Minnesota received a $7.2M state grant for a two-phase project combining shelter and permanent supportive housing, with 40 apartments and year-round emergency shelter beds.
  
  
• Canton, Ohio, ranks as America’s top housing market for the second time in a row, offering affordable homes ($163K below the national median), a strong local economy, and a lower risk of climate-related disasters.
  
  

Southeast Region Housing News:

• A bill in Tallahassee could make Florida’s insurer of last resort, Citizens Property Insurance, available to all homeowners, covering only windstorm damage, as part of efforts to address the state’s property insurance crisis.
  
  
• Tennessee home prices are expected to rise in 2025, with metro areas seeing at least a 6.3% increase.
  
  
• Charleston leaders are tackling affordable housing, with plans to expand availability and reduce costs as 91% of the workforce falls into lower income ranges.
  
  
• New Hanover County, North Carolina may increase its affordable housing funding to $5M/year, after a $3M annual investment helped create 664 new units and attracted $131M in private funding.
  
  
• Florida home prices are seeing steep discounts, with West Palm Beach, Fort Lauderdale, and Miami selling 5% below asking—the largest markdown among major U.S. metros—driven by rising insurance costs, HOA fees, and natural disaster concerns.
  
  

Pacific Northwest Region Housing News:

• Idaho's housing market in 2025 is among the least competitive, with a 9% decrease in homes for sale as of December 2024, leading to a balanced market.
  
  
• Oregon faces a severe housing shortage, with one of the lowest home availability rates in the U.S. and over half of renters in major cities being rent-burdened.
  
  
• $18M for affordable housing in Washington: 45 families, including 11 in Spokane County, will become homeowners through Habitat for Humanity’s scattered site model, keeping homes permanently affordable.

Southwest Region Housing News:

• The Miraluz affordable farmworker housing project in Heber, Utah broke ground after nearly a decade of planning, with 63 units in the first phase and plans for 320 units across five complexes to support farmworker families in the Imperial Valley.
  
  
• Aspen's market is stabilizing, while Snowmass Village sees strong appreciation and new condo offerings, narrowing the price gap between the two.
  
  
• Arizona bill could allow churches to build affordable housing, letting religious institutions develop multi-family housing on their land while bypassing zoning laws.

Texas Housing News:

• Austin home prices have dropped, with the median listing price down 7.1% year-over-year to $585K in December, as higher mortgage rates cool demand.
  
  
• Texas is set to become the most populous state by 2045, raising concerns about housing affordability. 90% of Texans say housing costs are a problem, according to a recent poll.
  
  
• Texas is the fastest-growing state, leading the U.S. in new home permits and attracting out-of-state buyers (especially from California) due to its job opportunities, affordable housing, and strong rental market.
  
  

California Housing News:

• California's median home price in January was $838,850, up 6.3% from January 2024 but down 2.6% from the previous month.
  
  
• January wildfires in Los Angeles County caused an estimated $28B to $53.8B in damage, according to a report by the Southern California Leadership Council and LA County Economic Development Corporation.
  
  
• Here’s a glimpse at how different regions in California performed in January 2025 compared to January 2024:
  
  • Central Coast: Led with the biggest sales jump (+8.3%) and the highest price growth (+14.5%).
  • Southern California: Sales rose slightly (+1.8%), while prices saw a notable increase (+7.7%).
  • San Francisco Bay Area: Sales barely moved (+0.2%), with a modest price uptick (+2.3%).
  • Central Valley: Sales inched up (+1.1%), and prices climbed moderately (+4.3%).
  • Far North: The only region with a sales decline (-11.0%), but home prices still rose (+10.7%).
    
    

Be sure to check back next month for our updated insights and trends to keep you informed on the latest developments. In the meantime, if you’re thinking about buying, selling, or refinancing, our Home Loan Specialists are always ready to help you make the right move.