Single-Family Homebuilding In The United States Rebounded Sharply In February. According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau This Week in Real Estate, single-family homebuilding in the United States rebounded sharply in February, nearly offsetting January’s decline. Single-family housing starts surged by 11.4% to a seasonally adjusted annual rate of 1.108 million units, marking the highest pace since February 2024. However, single-family permits decreased by 0.2% to a rate of 992,000 units, reflecting a 3.4% decline compared to the previous year. Existing-home sales in February increased to the second highest level since March 2024, as reported by the National Association of Realtors. Total existing home sales rose by 4.2% to a seasonally adjusted annual rate of 4.26 million units. On a year-over-year basis, sales were 1.2% lower than in February of the previous year. The median sales price of all existing homes in February was $398,400, representing a 3.8% increase from the previous year and marking the 20th consecutive month of year-over-year price increases. In a widely anticipated decision, the Federal Reserve maintained the benchmark interest rate at 4.25% to 4.50%, pausing a rate cut for the second consecutive meeting after having reduced it by 100 basis points since September. Federal Reserve Chair Jerome Powell stated, “We are focused on parsing the signal from the noise as the situation evolves. We are not in a hurry.” Below are key events from the third week of March impacting our business:
SINGLE-FAMILY HOUSING STARTS HIT 12-MONTH HIGH IN FEBRUARY. Overall housing starts increased 11.2% in February to a seasonally adjusted annual rate of 1.50 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Within this overall number, single-family starts increased 11.4% to a 1.11 million seasonally adjusted annual rate, the highest pace since February 2024. The multifamily sector, which includes apartment buildings and condos, increased 10.7% to an annualized 393,000 pace. Overall permits decreased 1.2% to a 1.46-million-unit annualized rate in February and were down 6.8% compared to February 2024. Single-family permits decreased 0.2% to a 992,000-unit rate and were down 3.4% compared to the previous year. Multifamily permits decreased 3.1% to a 464,000 pace. The number of single-family homes under construction in February was down 6.7% from a year ago, at 640,000 homes. In February, the count of apartments under construction increased 0.3% to an annualized 772,000 pace. It marks the first gain after 18 months of consecutive declines but was still down 20% from a year ago. Read the full story here.
EXISTING-HOME SALES ACCELERATED 4.2% IN FEBRUARY. Total existing-home sales progressed 4.2% from January to a seasonally adjusted annual rate of 4.26 million in February. Year-over-year, sales slid 1.2% (down from 4.31 million in February 2024). Total housing inventory registered at the end of February was 1.24 million units, up 5.1% from January and 17% from one year ago (1.06 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, identical to January and up from 3.0 months in February 2024. The median existing-home price for all housing types in February was $398,400, up 3.8% from one year ago ($383,800). Single-family home sales scaled 5.7% to a seasonally adjusted annual rate of 3.89 million in February, down 0.3% from the prior year. The median existing single-family home price was $402,500 in February, up 3.7% from February 2024. Read the full story here.
FED HOLDS INTEREST RATES STEADY, STILL SEES TWO CUTS COMING THIS YEAR. The Federal Reserve in a closely watched decision Wednesday held the line on benchmark interest rates though still indicated that reductions are likely later in the year. The rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. Markets had been pricing in virtually zero chance of a move at this week’s two-day policy meeting. Despite the uncertain impact of President Donald Trump’s tariffs as well as an ambitious fiscal policy of tax breaks and deregulation, officials said they still see another half percentage point of rate cuts through 2025. The Fed prefers to move in quarter percentage point increments, so that would mean two reductions this year. Investors took encouragement that further cuts could be ahead, with the Dow Jones Industrial Average rising more than 400 points following the decision. However, in a news conference, Federal Reserve Chair Jerome Powell said the central bank would be comfortable keeping interest rates elevated if conditions warranted it. “If the economy remains strong, and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer,” he said. “If the labor market were to weaken unexpectedly, or inflation were to fall more quickly than anticipated, we can ease policy accordingly.” Read the full story here.
Take advantage of superior service and the convenience of one-stop shopping for the best loan and insurance coverage to fit your needs. Home warranty coverage is available through America’s #1 home warranty company, American Home Shield.
