Real Estate News - April 2025
Home sales in March declined to their slowest pace since 2009
Sales of previously owned homes declined 5.9% in March compared to February, dropping to a seasonally adjusted annual rate of 4.02 million units, according to the National Association of Realtors. This marks the slowest pace for March sales since 2009.
Compared to March 2024, sales were down 2.4% and declined across all regions, with the West seeing the steepest drop—over 9%—as it remains the most expensive region in the country.
These figures reflect closed transactions, which likely originated from contracts signed in January and February, when the average 30-year fixed mortgage rate hovered above 7%. Rates didn’t consistently dip below 7% until February 20, per Mortgage News Daily.
“Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates,” said Lawrence Yun, chief economist at NAR. “Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.”
Despite weak sales, inventory rose sharply. By the end of March, 1.33 million homes were on the market—a 20% increase from a year earlier. At the current pace, that translates to a 4-month supply, still below the 6-month threshold considered a balanced market.
Rising inventory and slower sales are beginning to temper price growth. The median price for an existing home sold in March was $403,700—an all-time high for the month, but only 2.7% higher than a year ago. This marks the smallest annual gain since August and continues a slowing trend since December.
First-time buyers accounted for 32% of purchases in March, unchanged from a year earlier but below the historical norm of 40%. All-cash sales declined to 26%, down from 28% last year, while investor activity remained steady at 15%.
Looking ahead, the NAR noted an uptick in canceled contracts in March, and ongoing market volatility in April could cause more deals to fall through.
Homeownership Slipping Further Out of Reach for Many Americans
According to Globe St, the path to homeownership is becoming increasingly difficult for many Americans. New data from Redfin reveals that buyers now need to earn $116,633 annually to afford a median-priced home—almost double the $64,160 required for a typical rental. That’s an 81.8% affordability gap, the widest it's been in recent years.
A Rapidly Widening Divide
*) In 2021, the income needed to buy a home was only 17.3% higher than to rent.
*) By 2024, that gap has surged past 80%, highlighting how quickly home prices have outpaced rental costs.
Why Homeownership Is So Unattainable
*) Redfin’s benchmark assumes no more than 30% of income spent on housing.
*) With the U.S. median household income around $86,000, most Americans fall short by approximately $30,000 to afford a median-priced home.
*) The median home sale price now sits at $424,000, while mortgage rates remain above 6.5%.
*) High interest rates and low inventory continue to fuel competition, driving prices even higher.
Renters Catch a Break—for Now
*) Meanwhile, rents have remained relatively stable.
*) Median asking rent rose just 0.2% year-over-year in February, reaching $1,604.
*) A surge in new multifamily construction has helped keep rent prices in check, offering more choices for renters and easing housing inflation.
Looking Ahead: A Challenging Road to Homeownership
The growing gap between owning and renting suggests that many Americans may remain renters longer than expected. While rent increases or falling mortgage rates could narrow the divide slightly, current market conditions point to ongoing affordability challenges.
Austin property managers and Property owners must meet the deadline for the new air conditioning requirements by July 10
The Austin City Council recently approved a new code amendment requiring property owners to install and maintain functioning air conditioning units that meet specific standards.
According to KUT, the new rule doesn't mandate central air conditioning, but property owners must provide some form of cooling—such as window units capable of lowering indoor temperatures by at least 15°F below the outside temperature, as long as the interior remains at or below 85°F. The requirement applies to all 'habitable' rooms, typicallyspaces used for sleeping, eating, cooking, or relaxing. Areas like attics are generally not included.
Nvidia Expands U.S. Manufacturing with New AI Facilities in Texas
Nvidia is teaming up with Foxconn and Wistron Corp. to build advanced manufacturing facilities in Texas, marking a major step toward reshoring its AI supercomputer production. Once operational, these plants will enable Nvidia to manufacture its cutting-edge AI systems entirely within the United States, reducing reliance on overseas supply chains amid rising global trade tensions.
Nvidia CEO Jensen Huang emphasized the significance of the move, stating: “The engines of the world’s AI infrastructure are being built in the United States for the first time.” Mass production is expected to begin in 12 to 15 months.