Blog Post Date March 24, 2025
By Don Almeida- Mortgage Expert and President of Happy Home Mortgage
The U.S. housing market showed signs of renewed strength in February, with existing-home sales climbing at a notable pace. This positive momentum suggests that both buyers and sellers are gaining confidence as the spring season approaches.
Existing-Home Sales on the Rise
Last month, home sales increased by 4.2%, reaching an annualized pace of 4.26 million units. While still slightly below last year’s numbers, this growth marks a step in the right direction for the real estate market. Experts note that improving inventory levels and buyer interest are contributing to this upward trend.
Home Prices Continue to Appreciate
Home values remained resilient, with the median existing-home sales price rising 3.8% year-over-year to $398,400. This marks the 20th consecutive month of price growth, demonstrating continued demand. Regional price trends reflect a steady market across the country:
- Northeast: $464,300 (up 10.4%)
- Midwest: $295,500 (up 5.8%)
- South: $358,800 (up 1.9%)
- West: $614,600 (up 3.6%)
More Homes, More Choices
Housing inventory expanded to 1.24 million units, up 5.1% from January and a significant 17% increase from last year. This translates to a 3.5-month supply, a welcome sign for buyers who have faced limited choices in recent years. Homes remained on the market for an average of 42 days, slightly longer than the previous year, signaling a more balanced environment between buyers and sellers.
First-Time Buyers and Investors
First-time homebuyers made up 31% of purchases, a promising sign of increased accessibility to homeownership. Meanwhile, cash buyers accounted for 32% of all sales, reflecting continued interest from investors and those avoiding mortgage financing.
Mortgage Rates and Market Outlook
The 30-year fixed mortgage rate averaged 6.65% in early March, slightly lower than last year’s levels. While borrowing costs remain a factor, stable rates and growing inventory could keep the market moving forward.
With sales picking up, prices holding strong, and inventory levels improving, the housing market is showing resilience. As spring approaches, real estate activity is expected to maintain its upward trend, creating opportunities for buyers and sellers alike.
Sources:
National Association of Realtors (NAR), Freddie Mac
