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What’s Up with Real Estate?
National news and local views for the week ending Friday, January 17, 2025
National Real Estate News
Tamer inflation
It might not be obvious from the graph above, but the December CPI (Consumer Price Index = inflation for you and me) was very good news for the bond market (and mortgage rates). December “core” CPI rose just 0.2% month-over-month, and the year-over-year inflation rate moved from 3.30% in November to 3.25% in December. Remember: the Fed’s 2% target is based on “core” PCE, not CPI. [Source: BLS]
Provides market relief
The tamer CPI report was a massive relief for the bond and stock market. The yield on the 10-year US Treasury Bond dropped from 4.80% to 4.60% (a huge move in that market) and average 30-year mortgage rates declined from 7.25% to 7.11%. Despite all this good news, the market still overwhelmingly expects NO CUT at the Federal Reserve’s Jan 29 meeting. [Source: Mortgage News Daily, CME]
Where’s the inventory?
Over the course of 2024, the nationwide inventory of homes for sale rose 28% (to 871K) and is now only 16% below pre-pandemic levels. But Florida, Texas and California represent 36% of that inventory, despite having just 27% of the US population. In many other states – especially in the Midwest and Northeast – inventory is still 40-70% below pre-pandemic levels. [Source: Realtor.com]
Local Market Trends
As of Friday, January 17, 2025
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| 03110 |
$870,000
-0.3%
|
11
-0.4%
|
1 |
44
-0.4%
|
| 03106 |
$475,000
-0.1%
|
13
1.6%
|
9 |
2
-1%
|
| 03102 |
$496,500
0.1%
|
14
-0.1%
|
4 |
19
-0.1%
|
| 03064 |
$762,450
0%
|
8
-0.1%
|
2 |
59
0.2%
|
/) from Dec. to Jan. 2025.
