March 2025 National Market Report

March 2025 National Market Insights Report

Inflation ticked down in the early March reading; the Fed again kept its benchmark rate unchanged; and interest rates remained well below 7%. Amid high volatility, stock markets saw substantial declines, then some recovery through the 3rd week of March. Consumer confidence continued to fall across all population segments by age, education, income, wealth, political affiliation, and region, and expectations for personal finances, jobs, inflation, business conditions, and financial markets all declined (per University of Michigan’s early-March “Surveys of Consumers”). 

Generally speaking, the broader market is typically more affected by interest rates, i.e. affordability, while higher-price home sales are more influenced by stock markets, i.e. changes in household wealth. 

Year over year, monthly median house and condo/co-op sales prices in February were up 3.7% and 3.5% respectively. 50% of home sales sold in less than 1 month, and 21% closed for over asking price. All-cash sales rose to 32% of total sales, and purchases by first-time buyers increased to 31%. 24% of buyers waived their inspection contingency, and the same percentage waived the appraisal contingency. Over the past 3 months, 13% of contracts had delays in close of escrow, and 5% were terminated before the sale closed. 

The number of new listings rose 8% from January and 4% year over year: It can be expected to continue to climb through May or June. The daily number of active listings was up 27.5% year over year, hitting its highest month-of-February count since 2020, and sales of existing homes rose 7% from January, but fell 5% from February 2024. 

Much of February data still reflects mid-late winter market conditions; March is typically the month when the spring selling season really begins in earnest. 

See full report here: https://www.compass.com/marketing-center/editor/v2/flipbook/8c2c7981-2601-43ad-83bd-ddd6706aee76