Home sales lowest in 30 years

Mapped: Organized Crime Hot Spots Around the World and 12 more real estate insights

Latest Rates

Loan Type

Rate

Daily Change

Wkly Change

Mthly Change

Yrly Change

52-Wk Low/High

30 Yr. Fixed

7.11%

-0.01%

+0.03%

+0.01%

+0.16%

6.11/7.52

15 Yr. Fixed

6.51%

-0.01%

+0.01%

+0.06%

+0.19%

5.54/6.91

30 Yr. FHA

6.54%

+0.01%

+0.07%

+0.10%

+0.29%

5.65/7.00

30 Yr. Jumbo

7.37%

+0.00%

+0.02%

+0.07%

+0.11%

6.37/7.68

7/6 SOFR ARM

6.94%

+0.01%

-0.03%

-0.04%

+0.62%

5.95/7.55

30 Yr. VA

6.55%

+0.00%

+0.07%

+0.10%

+0.28%

5.66/7.03

Macro Trends

U.S. homes sales in 2024 fell to lowest level in nearly 30 years: WSJ link

  • U.S. existing-home sales dropped to 4.06 million in 2024, the lowest level since 1995. This marks the second consecutive year of subdued sales due to persistently high mortgage rates.

  • Mortgage rates between 6% and 8% since late 2022 have made homeownership unaffordable for many buyers. Record-high home prices in 2024, coupled with rising property taxes and insurance costs, further strained affordability.

  • Fixed costs like property taxes and insurance are expected to rise further, unlike mortgage rates which fluctuate. These rising expenses are adding to the challenges faced by homeowners and buyers alike.

Real Estate Trends

Survey finds 1 in 4 senior housing caregivers experience food insecurity link

  • Around 27% of senior housing caregivers have experienced food insecurity in the past year, nearly double the 14.5% rate in the general U.S. population. This highlights significant financial strain among caregivers compared to national averages.

  • Approximately 23% of caregivers also face housing insecurity, compared to 12.9% in the general population. Many worry they may lose their housing within two months.

  • A striking 75% of respondents reported they don’t have enough money to cover monthly or quarterly bills. The report calls for senior living communities to invest in programs addressing financial stability, housing, and mental health.

U.S. sees unprecedented growth in hotel construction pipeline

  • The U.S. hotel construction pipeline reached a record high in 2024, with 6,378 projects and 746,986 rooms, marking a 7% rise in projects and 8% in room counts from the previous year. Early planning projects surged by 15% in number and 19% in rooms, totaling 2,970 projects and 345,640 rooms.

  • Upper midscale hotels dominated the pipeline with 2,354 projects and 227,845 rooms, followed by upscale hotels with 1,471 projects and 182,474 rooms. The midscale segment hit 957 projects and 80,436 rooms, while upper upscale hotels recorded 338 projects.

  • In 2024, 583 new hotels opened with 67,995 rooms, expanding U.S. hotel supply by 1.2%. Projections for 2025 include 730 new hotels with 82,538 rooms, increasing supply by 1.5%, with further acceleration in 2026 to 904 hotels and 97,328 rooms.

  • link

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Green Street: U.S. property prices up nearly 5% year-over-year link

  • U.S. property prices rose 4.8% in 2024, but they are still 17.8% below their 2022 peak. Treasury yield increases may cause stagnation in 2025, according to Green Street's forecast.

  • Apartment and mall sectors showed the strongest year-over-year gains, with prices rising 14% and 17%, respectively. In contrast, office, self-storage, and lodging sectors struggled.

  • Mall properties are the only sector with pricing not in double-digit decline since the 2022 peak. This highlights their relative resilience in a mixed market landscape.

Lending still a big barrier for senior living development, growth in 2025 link

  • The senior living industry faces $10 billion in loan maturities in 2025, with lending still constrained despite some improvement in debt markets. Elevated construction costs and limited access to capital continue to stall new development activity.

  • Larger players like Sonida Senior Living are securing funding by leveraging long-standing relationships, while smaller operators struggle due to the sector's operational complexities. Banks remain selective, with construction lending heavily dependent on a lower interest rate environment.

  • Although the Federal Reserve cut interest rates three times in 2024, creating some optimism, lenders are cautious after bad experiences during the pandemic. Many anticipate more all-cash transactions in 2025 as debt capital becomes harder to secure and more expensive.

Something I found Interesting

Connecting builders and buyers: how Zillow is redefining new home sales link

  • Zillow attracts 200 million unique users monthly, giving homebuilders unmatched visibility. The platform reaches buyers who may not consider new homes, expanding the market for builders.

  • Zillow enables builders to showcase inventory, site plans, and buildable options alongside resale homes. This strategy helps resale-focused buyers explore new home opportunities without overshadowing builder websites.

  • Zillow predicts a 2.6% home price change for 2025, with small homes and higher-density living gaining popularity. Pet-friendliness remains a key driver, especially in rental markets, while the southwest may see more buyer negotiating power.

Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.

The homebuilder trends buyers are loving

(This content is restricted to Pro Members only. Upgrade)

United Van Lines National Annual Movers Study – 2024

(This content is restricted to Pro Members only. Upgrade)

Managing corporate real estate: Emerging trends

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Apartment rents could grow by up to 4% in these markets

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Real estate tech trends to watch in 2025

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Inside 3 big senior living sales trends of 2025

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Off Topic

Mapped: Organized Crime Hot Spots Around the World

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Unreal Real Estate

This is truly bananas!

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