BiggerPockets Daily The Fed Downplays Volatility As Home Sales Beat Expectations
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Mar 21, 2025 Recent data reveals a surprising 4.2% rise in existing home sales, despite some regional fluctuations. The housing market is showing signs of revitalization with an increase in inventory and a steady influx of first-time buyers. Meanwhile, the Federal Reserve has decided to keep interest rates steady, offering a calm outlook amidst economic uncertainties. This discussion also touches on the impact of tariffs and inflation on housing affordability, painting a dynamic picture of the evolving real estate landscape.
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Existing Home Sales Beat Expectations
- Existing home sales unexpectedly climbed 4.2% in February to an annual rate of 4.26 million.
- This positive trend, driven by rising inventory, contradicts earlier predictions of a market slowdown.
Inventory and Affordability
- Rising housing inventory offers buyers more choices, positively impacting affordability.
- However, the 3.5-month supply still favors sellers, indicating stable prices rather than significant drops.
Buyer Demographics Shift
- First-time homebuyers increased to 31% of sales, likely due to slightly lower mortgage rates.
- Cash buyers, now at 32%, outnumber first-time buyers, while investor activity has decreased to 16%.