National Real Estate Market Update as of February 21 2025

[Kristen Haynes]

What’s Up with Real Estate?

National news and local views for the week ending Friday, February 21, 2025

Kristen Haynes

Real Estate market update as of February 24 National Real Estate News More new homes please

During the pandemic, the inventory of existing homes for sale plunged. And when fast-rising home prices and mortgage rates hit affordability, homebuilders were able to construct smaller homes and offer financial incentives. As a result, new home sales went from 9-10% of total homes sold annually to around 14% of homes sold in 2023 and 2024. [Source: Census Bureau, NAR]

Can't break 7%

Average 30-yr mortgage rates have hovered around 7% for most of the last two weeks. On the one hand, the Fed's pause (no rate cut) and the subsequent hotter-than-expected CPI inflation report pushed yields higher. On the other hand, the potential end to QT (that's "quantitative tightening", the reverse of QE) should push yields lower. [Source: Mortgage News Daily, Federal Reserve]

Builders less confident

America's homebuilders were understandably stressed by the potential for 25% blanket tariffs on Canada and Mexico and increased tariffs on China. According to the National Association of Homebuilders, around 30% of soft wood lumber (used in house framing) and 32% of appliances come from international trade. Higher home construction and renovation costs ahead? [Source: NAHB]

Local Market Trends As of Friday, February 21, 2025

Area	Median Price	Active Listings	New Listings - 5 days	Median Days on Market
Cornelius, NC	$600,0000.1%	89-0.1%	9	60-0.1%
Charlotte, NC	$429,000-0.2%	21200.1%	197	46-0.3%
Charleston, SC	$675,000-0.2%	521-0.4%	52	47-0.4%
Isle of Palms, SC	$2,507,500	58	4	40

Local Market Trends (

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) from Jan. to Feb. 2025.