As the real estate market gears up for the busy spring season, February’s numbers reveal intriguing trends that hint at what buyers and sellers can expect in the months ahead. Here’s a breakdown of the latest insights and market dynamics.

Inflation, Interest Rates & Consumer Confidence

• Inflation eased in early March, with the Federal Reserve maintaining its benchmark rate below 7%.
• Stock markets experienced significant volatility, showing declines followed by a slight recovery mid-March.
• Consumer confidence declined across all demographics, with lower expectations for personal finances, jobs, inflation, business conditions, and financial markets, according to the University of Michigan’s early-March “Surveys of Consumers.”

Market Dynamics & Buying Trends

• Broader markets remain sensitive to interest rates, impacting affordability, while higher-priced home sales are more influenced by stock market performance and household wealth.
• Median house and condo/co-op sales prices increased year-over-year by 3.7% and 3.5%, respectively.
• Half of all home sales closed within one month, and 21% closed above the asking price.
• All-cash sales accounted for 32% of transactions, with first-time buyers representing 31% of the market.
• Waiver trends: 24% of buyers waived their inspection contingencies, while another 24% waived appraisal contingencies.

Contract & Listing Activity

• Over the past three months, 13% of contracts experienced delays in closing, and 5% were terminated before completion.
• New listings saw an 8% increase from January and a 4% increase year-over-year.
• Daily active listings climbed 27.5% year-over-year, marking the highest February count since 2020, although still 5% below February 2024.
• Sales of existing homes rose 7% from January.

Looking Ahead

February’s data largely reflects the slower winter market, but with March marking the start of the spring selling season, activity is expected to ramp up. With interest rates stabilizing, demand from first-time buyers and cash buyers remains strong. If you’re considering buying or selling, it’s a great time to evaluate your options.

Stay tuned for more updates, and feel free to reach out to our team at The Bowers Group for personalized advice and guidance.

Here is the electronic version: March 2025 Insights