March 2025 Real Estate Market Update

Welcome to our March 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.

March Financial Market News

• Treasury yields dropped (10-year yield down 24 bps to 4.28%) due to concerns over an economic slowdown and shifting tariff policies.
  
  
• March's jobs report showed stronger-than-expected growth with 228,000 jobs added and unemployment ticking up to 4.2%.
  
  
• President Donald Trump announced his two-step tariff plan, termed 'Liberation Day', with a 10% baseline tariff starting April 5 and additional tariffs for certain countries on April 9.
  
  
• Bank of America reported an 80% increase in mortgage applications between January and March, driven by more homes on the market and lower bond yields.
  
  
• The current annual inflation rate is 2.8% - still above the Fed's 2% target.
  
  

March National Housing Market News

• Existing home sales rose 4.2% in February, rebounding from a sluggish January and reaching an annual rate of 4.26 million, driven entirely by gains in the South (+4.4%) and West (+13.3%).
  
  
• Zillow now forecasts U.S. home prices to rise just 0.8% between February 2025 and February 2026, down from last month’s 1.1% projection and January’s 2.9% estimate.
  
  
• According to Zillow, April 13-19 is projected as the best week to list a home to sell in 2025, with home prices 6.7% higher than in January and homes selling 17% faster than normal.
  
  
• Existing-home inventory rose 5.1% month-over-month in February and is up 17% compared to last year.
  
  
• The hottest housing markets for January 2025, according to the U.S. News Housing Market Index:

1. 1. Omaha, NE – 76.2
   2. Austin, TX – 72.3
   3. Houston, TX – 71.6
   4. Charleston, SC – 71.6
   5. Denver, CO – 71.5

• In March, the 30-year fixed-rate mortgage settled at 6.65% (-19 bps from February), while the 15-year fixed-rate mortgage fell to 5.83% (-20 bps). Freddie Mac does not report on the average fees and points that may be added to their rate averages.
  
  
• Builder confidence declined in March due to economic uncertainty, tariffs, and high construction costs, despite optimism about potential regulatory improvements.
  
  
• Lennar, the second-largest homebuilder, reports a slow spring start, with weak demand in Florida and Texas leading to higher inventory and more incentives like price reductions and mortgage rate buydowns.
  
  

March National Housing Trends

• Affordable Midwest cities like Des Moines, Omaha, and Dayton are attracting the most Gen Z home buyers, while pricier metros like San Jose and San Francisco saw the least.
  
  
• Nearly 60% of home builders used sales incentives, such as covering closing costs or offering mortgage-rate buydowns, in March.
  
  
• Mortgage purchase loan applications rose 5% year-over-year through mid-March, according to Freddie Mac, despite economic uncertainty and fluctuating consumer sentiment.
  
  
• Spring housing market is heating up with an 8.2% year-over-year rise in new listings for the 11th consecutive week, but pending sales remain sluggish as some buyers stay cautious.
  
  
• Despite high home prices and mortgage rates, first-time home buyers made up 31% of sales in February, up from 24% a year ago.
  
  
• Baby boomers now make up 42% of home buyers, surpassing millennials, who dropped to 29% from 38% last year.
  
  

March 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:

• Massachusetts’ single-family home market is continuing its late 2024 trend—both home sales and median prices are up year-over-year.
  
  
• The Manchester Housing Alliance Land Trust is creating limited equity housing co-ops in Manchester, NH, to provide affordable, stable housing. Residents will own shares in the building, helping keep costs low and ensuring long-term affordability.
  
  
• Virginia Tech cancels their major housing plan that could have housed nearly 5,000 people.
  
  
• Manhattan’s luxury real estate market is booming, especially for properties over $5 million and $20 million+, driven by wealthy buyers seeking safer investments amid market volatility.
  
  

Midwest Region Housing News:

• The Midwest is both the most affordable region and the fastest-growing in terms of home prices, with Milwaukee leading the nation at a 20% year-over-year price jump.
  
  
• Indiana’s Emergency Rental Assistance program ended six months early, cutting off vital support for struggling families. Rep. Kyle Miller criticized the decision, highlighting the state’s ongoing housing crisis and lack of affordable rentals.
  
  
• Michigan’s housing shortage, is being addressed by nonprofits and businesses using creative approaches like repurposing buildings and building tiny homes.
  
  

Texas Housing News:

• Galveston's Airbnb gold rush is crashing—a flood of vacation rentals has hit the market, but buyers aren’t biting.
  
  
• Texas lawmakers are moving to override local lot size rules to boost housing supply and lower costs. SB 15, which passed the Senate, would allow more townhomes and starter homes in larger cities.
  
  
• Fogelman Properties acquired and rebranded a 258-unit complex in Humble, Texas, as The Fenwick, attracted by the area's strong schools, economic stability, and prime location with easy access to Houston. The company plans upgrades to the property amid ongoing job growth in the region.
  
  
• Mt. Zion Baptist Church in East Austin is partnering with Capital A Housing to replace 10 bungalows with 80 affordable apartments, hoping to provide affordable housing for seniors, possibly church members, in response to rising home prices in the area.
  
  

Southeast Region Housing News

• Lennar, the second-largest homebuilder, reports a slow spring start, with weak demand in Florida and Texas leading to higher inventory and more incentives like price reductions and mortgage rate buydowns.
  
  
• The McAfee House, a historic pre-Civil War home in Cobb County, GA, was listed for sale at $1, with the condition that the buyer covers relocation costs.
  
  
• South Carolina ranks 5th in the U.S. for the highest number of single women homeowners but 6th for the widest gender gap in homeownership rates.
  
  
• Cash buyers dominate Florida's market, accounting for 42% of home purchases, driving up prices and deepening economic inequality.
  
  
• Tennessee housing prices are rising as wealthier out-of-state buyers move in, while supply struggles to keep up with demand.
  
  

Southwest Region Housing News:

• Cabana Kyrene, an affordable housing community with 229 rental units, is under construction in Tempe, Arizona and set to be completed by September 2026. It aims to address local affordable housing for teachers, service workers, and healthcare professionals.
  
  
• Gov. Joe Lombardo is set to unveil a comprehensive housing bill to address Nevada's housing crisis, including $200M for attainable housing, expedited approval processes, and rental assistance.
  
  
• ​In Utah's current real estate market, increased inventory and longer listing durations have led sellers to offer concessions averaging $10,000 to $15,000. These concessions assist buyers with closing costs or interest rate buy-downs, making home purchases more accessible.
  
  
• As of January 2025, Coloradans need an annual income of $168,643 to afford a typical home, a 67% increase from 2020.
  
  

Pacific Northwest Housing News:

• Seattle's housing debate heats up as local leaders and state lawmakers disagree on how to solve the housing shortage, with some pushing for more government-led development and others supporting private developers.
  
  
• The Janus Bridge House in Portland, which provided transitional housing for homeless youth for nearly 40 years, has closed due to funding shortages.
  
  
• Carter Fulcher, a fifth-generation Idahoan, is launching Birmingham Estates, a luxury real estate development in Owyhee County, which will feature 30 estate-style homes along the Snake River.
  
  

California Housing News:

• A rare 'Earthship home' has hit the market in Canoga Park, California for $2.5 million, a rarity outside of desert states like New Mexico and Arizona.
  
  
• Active home listings in California surged 44% in February year-over-year, compared to a 28% increase nationwide.
  
  
• Five of the top 11 U.S. cities for inventory growth are in California, including San Diego (+61%).
  
  
• Home sales surged 25%+ in areas near wildfire-damaged neighborhoods, while sales dropped 78% in the hardest-hit areas, reshaping SoCal's housing market.
  
  
• Home sales in California hit a two-year high in February, rising 11.6% from January, signaling a potential market rebound.
  
  
• California’s long-standing housing vs. environment battle may be nearing a resolution with a new bill by Assembly Member Buffy Wicks.
  • Supporters argue it will boost housing supply and affordability, while critics warn it weakens environmental protections.
  
  

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.