APRIL 3, 2025, EDITION

This year, the annual spring spike in home sales started early. February sales of pre-owned homes bumped up more than 4%, as inventories of pre-owned homes grew more than 5% over the prior month.

Looking ahead, the Pending Home Sales measure of contract signings on pre-owned homes also went up in February. The forecast calls for those sales to grow by 6% this year, and new home sales by 10%.

New Home Sales in February also saw a gain, and are up more than 5% from a year ago. The median sales price is down 10% from its 2022 peak, and the supply of completed homes is up over 280% from its 2022 bottom.

Inventories of new homes for sale will be increasing, Builders started construction on over 11% more homes in February than January, while completions came in more than 7% ahead for the month.

Home prices rose modestly in January. The well-respected Case-Shiller home price index went up only 0.6%, and the FHFA index of prices for homes bought with conforming mortgages rose just 0.2%.

The Mortgage Bankers Association reports that last week applications for purchase mortgages “saw the strongest weekly pace in almost two months and were 7% higher than the same week one year ago.” 

DID YOU KNOW?… Data from First American Financial pegs home price appreciation for the year at 2.1%. If that holds, along with current inventory, they say “affordability will improve by nearly 3.5%.”

The national average 30-year fixed mortgage rate ticked down in Freddie Mac’s weekly Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information. 

When deciding where you’d like your new home to be located, prioritize your have-to-haves and like-to-haves, just as you do with home features. School district, commute times, walkability, proximity to shops and restaurants, will all have more or less importance depending on the needs of the members of your household.

Don’t ignore the importance of your entryway. It should be immediately appealing to buyers. A fresh coat of paint on the door, new hardware, and a new door mat can make a big difference. Finish off the look with flowerbeds and potted plants.