The Housing Market Hotness Index edged up to 95.89 for the week ending April 13, 2025, reaching a level last seen in November 2024, a later point in the year compared to the market hitting this mark by the end of February in 2024. This indicates that the spring selling season has fallen short of the strong activity anticipated by real estate agents and home builders. While increased inventory and moderating price growth offer a potential silver lining for buyers, affordability remains a significant obstacle. Mortgage rates that were initially stable at around 6.6% in March and early April, jumped to 6.8% in the second week of April. With these factors at play, hesitant buyers could shape the market in the coming months, their decisions heavily influenced by interest rate movements and overall economic sentiment.
Strong housing markets persist in much of the Northeast and Midwest, where active inventory remains below pre-pandemic levels, with top-performing counties including Monroe (NY), Erie (NY), Santa Clara (CA), Kent (MI), and Snohomish (WA). In contrast, high inventory and low buyer demand are causing a slowdown in some Florida counties.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
