U.S. House Prices Rise 4.0 Percent over the Prior Year

 U.S. House Prices Rise 4.0 Percent over the Prior Year; Up 0.7 Percent from the Fourth Quarter of 2024.

for immediate release

05/27/2025

Washington, D.C. – U.S. house prices rose 4.0 percent between the first quarter of 2024 and the first quarter of 2025, according to the U.S. Federal Housing (FHFA) House Price Index (FHFA HPI®). House prices for the first quarter of 2025 were up 0.7 percent compared to the fourth quarter of 2024. FHFA’s seasonally adjusted monthly index for March was down 0.1 percent from February.

Significant Findings

• Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
• House prices rose in 49 states and District of Columbia between the first quarter of 2024 and the first quarter of 2025. The five states with the highest annual appreciation were 1) Rhode Island, 11.4 percent; 2) West Virginia, 9.3 percent; 3) Connecticut, 9.0 percent; 4) Ohio, 7.6 percent; and 5) Wyoming, 7.4 percent. House prices declined in Hawaii by 2.2 percent.
• House prices rose in 89 of the 100 largest metropolitan areas over the previous four quarters. The annual price increase was the greatest in Newark, NJ at 11.6 percent. The metropolitan area that experienced the most significant price decline was Lakeland-Winter Haven, FL at 9.0 percent.
• All nine census divisions had positive house price changes year-over-year. The Middle Atlantic division recorded the strongest appreciation, posting a 6.8 percent increase from the first quarter of 2024 to the first quarter of 2025. The Pacific division recorded the smallest four-quarter appreciation, at 1.8 percent.
• Trends in the Top 100 Metropolitan Statistical Areas are available in our interactive dashboard: https://www.fhfa.gov/data/dashboard/fhfa-hpi-top-100-metro-arearankings. The first tab displays rankings, and the second tab offers charts.

The FHFA HPI® is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities. It incorporates tens of millions of home sales and offers insights about house price changes at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.

FHFA releases HPI data and reports quarterly and monthly. The flagship FHFA HPI® uses seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac. Additional indexes use other data including refinances, mortgages insured by the Federal Housing Administration, and real property records. All the indexes (including their historic values) and information about future HPI release dates are available on FHFA’s website: https://www.fhfa.gov/HPI.

Tables and graphs showing home price statistics for metropolitan areas, states, census divisions, and the United States are included on the following pages.

Notes

• As announced in the previous quarterly report, FHFA adopted the new metropolitan area definitions starting with this release. The set of studied metropolitan areas adheres to the new delineations released by Office of Management and Budget (OMB) in July 2023 (Bulletin No.23-01). These changes will continue to be reflected in future HPI reports. More details can be found from the Technical Note in this report, and the report also provides Additional Highlights that discusses a few examples.
• FHFA will release the next monthly HPI report (including data through April 2025) on June 24, 2025, and the next quarterly report (including data for the second quarter of 2025 and monthly data for June 2025) on August 26, 2025.
• Beginning with the June 2025 HPI release, Excel tables in the .xls format will be published in the .xlsx format. Tables currently released as .txt or .csv will continue be published in those formats.
• FHFA posts release dates for the remainder of 2025 at https://www.fhfa.gov/data/hpi#ReleaseDates.
• Follow @FHFA on X, LinkedIn and Facebook for more HPI news.

 Attachments: FHFA HPI® Quarterly - May 2025

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.5 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on X @FHFA

, YouTube, Facebook, and LinkedIn.

Contacts: MediaInq​uiries@FHFA.gov

Pools remain an asset when pricing a home

 May 21, 2025

Today, buyers are likely to be more discerning and less willing to pay as much of a premium for a home with a pool than during the pandemic.

AUSTIN, Texas — As Memorial Day kicks off the summer season, a new analysis of Realtor.com listing data finds that while the pandemic-driven surge in swimming pool premiums has subsided, pools still command a significant price advantage, and the share of listings featuring pools reached an all-time high this April.

As of April 2025, the price premium for a home with a pool stands at 54%, and the share of listings with pools reached an all-time high of 24.4%, with 333,000 homes featuring a pool, the highest number since March 2019. While this premium is down from the peak in January 2022, when the typical home with a pool boasted a 61% price premium, it is still a significant advantage.

"During the pandemic, people were looking for ways to get more enjoyment out of their homes, and this surge in demand for features like pools, translated into a substantial 'pool premium,' where homes featuring a pool commanded significantly higher asking prices compared to their pool-less counterparts," said Hannah Jones, senior economic research analyst, Realtor.com. "This trend peaked in January 2022, and although price premiums have normalized, the presence of a pool continues to drive a premium and be a popular item to include in listings as a home or community feature."

Do pools drive higher listing prices?

Both homes with and without pools have seen substantial price increases since 2019. In 2019, the typical listing price for a home with a pool was $415,000. So far in 2025, the typical home with a pool was listed for $599,000, shy of the June 2024 peak of $599,900, but paving the way for near-record-high prices for homes with a pool later this summer when prices typically hit their annual peak. This upward trajectory underscores the overall appreciation of home values. Homes without a pool saw prices climb from $274,000 in 2019 to $389,000 in April 2025 (+42.0%), just lagging the appreciation of homes with a pool (+44.3%).

Some of this trend may be attributed to the fact that homes with pools are generally larger than those without. Currently, the typical for-sale home with a pool is about 32.4%, or 600 square feet, larger than one without. In April 2025, the median price- per-square- foot of a home with a pool was $247, compared to $204 for a home without a pool. In April 2019, pool price- per-square- foot for a home with a pool was $162 and without a pool was $135.

While prices have climbed across the board, the price gap between homes with and without pools, in percentage terms, has narrowed from its pandemic highs. According to Jones, "This doesn't necessarily mean pools are less valuable, but rather that the market's premium specifically for this amenity has softened."

The shift in market dynamics from a hyper-competitive seller's market in 2022 to a more buyer-friendly environment in 2025 is a crucial factor influencing the pool premium. In 2022, buyers were often willing to pay a premium for desirable amenities in a market characterized by limited inventory and intense competition. Today, with more options available, buyers are likely to be more discerning and less willing to pay as much of a premium for a home with a pool. Consequently, sellers are adjusting their pricing expectations for homes with this feature.

Where are pools most common?

Pools tend to be most popular in hot climates like the South and the West, where inventory levels have picked up more significantly than in their cooler counterparts, which could be driving the share of listings with a pool higher, as well.

This year, Miami, Phoenix, Orlando, Fla., Austin, Texas and Tampa, Fla., boast the highest share of homes listed with a swimming pool. Las Vegas, Houston, Nashville, Tenn., Indianapolis and Miami have seen the biggest increases in pool listings since 2019. Many of the metros that have seen the biggest increases in pool listings also have seen substantial new construction activity over the past six years, suggesting strong correlation between new development and the increasing availability of homes with pools, either private or within community amenity packages.

2025 and beyond – pools remain an asset; strategic pricing is key

While the extraordinary price premiums associated with swimming pools during the pandemic have softened, pools continue to be a valuable asset in the housing market. Homes with pools still command a significant price advantage over those without, both in absolute terms and on a price-per-square-foot basis.

"Sellers should be mindful of the evolving market dynamics and avoid overpricing their properties based solely on the presence of a pool," said Jones. "The market is more sensitive to value today, and buyers have more choices. A strategic pricing approach that considers the current, more moderate pool premium, the size and overall condition of the home, and the specific characteristics of the local market is essential for a successful sale."

Source: Realtor.com

© 2025 Florida Realtors®

New Rules Condotel Buyers Need to Know

 By Richard Swank

New legislation requires condotel buyers to receive disclosures about maintenance responsibilities and fees for non-condo areas, ensuring clarity before purchase.

ORLANDO, Fla. — On October 1, 2024, Florida Realtors® released revisions to its existing condominium riders to add a section with disclosure language related to “Condominiums Created within a Portion of a Building or Within a Multiple Parcel Building.” This disclosure language was mandated by the Legislature’s creation of section 718.407, Florida Statutes, pertaining to such condominiums. But that title doesn’t shed much light on exactly what kind of condominium the Legislature was talking about. This type of condominium is usually referred to as a “Condotel.”

Most people are vaguely familiar with the usual type of condominium. Generally speaking, the condominium form of governance is created when a developer builds a building (or sometimes a townhouse community) and then sells the individual dwelling units within the building to buyers. These buyers actually own the space inside the unit. In addition to the units themselves, the condominium consists of “common areas,” which are essentially any space outside the units. In a typical condominium, this space can encompass many things, including hallways, elevators, parking garages, pools and pickle ball courts. Once the developer has turned over control to the association, the owners within the condominium own these common areas collectively. The association board then votes on assessments to charge each owner to maintain the whole condominium, including these common areas.

Condotels are a little different. In the condotel form of governance, the owner of the building still sells individual units to buyers, who own the space inside. However, the building owner never turns the building over to an association of unit owners. The building owner – not the unit owners – retains control and ownership of the space outside the units.

Recent legal disputes muddied the waters with respect to who is responsible for the maintenance of this exterior space and whether specific parts of the space constitute common areas or shared amenities. Ultimately, the precise definition of these spaces is not crucial for purposes of this article. The important takeaway is that unit owners recognize they may have little control over how much they are charged to maintain these spaces outside their units.

Concern over this issue prompted the Legislature to pass section 718.407, Florida Statutes. Section 718.407 recognizes the condotel form of ownership and governance, calling it a “condominium created within a portion of a building or within a multiple parcel building.” The statute mandates that when creating such a condominium, the declaration must state which parts of the building are subject to a condominium form of governance and which are not. The declaration must then state which party is responsible for operating and maintaining such shared facilities and the way maintenance expenses will be apportioned.

Perhaps the most significant part of section 718.407 is the Legislature’s mandate that any buyer considering purchasing a unit in a condotel be provided a disclosure acknowledging what they are buying into. This is the reason the Florida Realtors disclosures were amended. The buyer must acknowledge multiple factors, including the fact that there are portions of the building outside their unit not included within the condominium form of governance. Critically, the disclosure puts the buyer on notice that even though the condo owners will not have control over the maintenance budget for these spaces, they will still be responsible for paying these fees.

Most importantly, though the prospective buyer must acknowledge their responsibility for fees, the disclosure does not give the buyer the right to terminate the contract once they become aware of this responsibility. It is therefore crucial that a buyer interested in a condotel unit be aware of this fact before making an offer on such a property. Real estate agents can assist with education about condotels by informing buyers of these issues, and directing their attention to section 718.407, Florida Statutes, at the outset of the representation. If the buyer still has questions, they should consult an attorney familiar with the ins and outs of condotels.

Richard Swank is an Associate General Counsel for Florida Realtors.

Note: Information deemed accurate on date of publication.

© 2025 Florida Realtors®

U.S. buyers median monthly mortgage payment at an all-time high

 May 1, 2025 by Dana Anderson

Mortgage-purchase applications are declining and pending home sales are sluggish.

https://www.redfin.com/news/housing-market-update-record-high-housing-costs-economic-uncertainty/

Why Existing-Home Sales Are Falling Short

 By Melissa Dittmann Tracey

Existing-home sales fell in March due to tight inventory, while new-home sales rose as builders met strong buyer demand. Buyers still face competition.

CHICAGO — Existing-home sales have lagged over the past two years, while new-home sales have surged — highlighting a key dynamic: Buyer demand remains strong when inventory is available.

The existing-home market continues to face a short supply of homes for sale, despite the latest progress of a 20% annual uptick in inventory. With just a 4 months’ supply of inventory, existing-home sales fell nearly 6% in March compared to February. Sales were down 2.4% from a year ago, the National Association of Realtors® reported Thursday.

“That may begin to shift,” says Lawrence Yun, NAR’s chief economist. “As time passes, life events — such as job changes, family transitions or financial needs — could prompt more homeowners to sell, even if it means giving up their low locked-in mortgage rates.”

As it stands now, about 44 million homeowners have a mortgage rate below 6%, according to an NAR analysis. That’s lower than the current 30-year fixed-rate mortgage, which has been averaging in the mid- to high 6% range. Buyers with financial wherewithal are bypassing mortgages altogether: All-cash buyers continue to make up a sizable share of the market, comprising 26% of existing-home sales transactions in March, according to NAR’s data.

Proof buyers are still out there

Even with last month’s slide in existing-home sales, buyers could still face some competition. Twenty-one percent of homes sold above list price in March, and 57% of real estate pros report that properties typically sold in just over a month, according to the March Realtors® Confidence Index Survey, reflecting results from a survey of more than 1,500 real estate pros about their latest transactions. Homes listed received an average of 2.4 offers. What’s more, 22% of buyers waived the inspection contingency and 19% waived their appraisal contingency in competing in a home sale last month.

Home prices also are still climbing: The median existing-home sales price in March reached an all-time high of $403,700, NAR reports.

Contrasting housing prices with recent stock market declines, Yun says, “Household wealth in residential real estate continues to reach new heights. With mortgage delinquencies at near-historical lows, the housing market is on solid footing.”

Signaling further potential buyer interest, mortgage applications for home purchases are up 4.3% year-to-date. “Aside from inventory growth, lower mortgage rates will be needed to get homeowners to move,” Yun says. “A small deceleration in home price gains, which was slightly below wage-growth increases in March, would be a welcome improvement for affordability.”

Builders capitalize on demand but face headwinds

Meanwhile, homebuilders have plenty of inventory — and in some cases, lower mortgage rates — to meet some of that pent-up buyer demand. Sales of newly built homes climbed 7% in March compared to the previous month and are up 6% from a year ago, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau reported on Wednesday.

“A wide inventory availability — at eight months’ supply — is helping newly constructed home sales to move forward,” Yun says. “The homebuilders’ focus on smaller-sized homes is also attracting buyers.” New home sales are up 33% year-to-date for homes priced below $300,000 and up by 28% year-to-date for new homes priced between $300,000 and $400,000, NAHB reports.

In March, the median price of newly constructed homes was $403,600, well-below the $435,000 price from three years ago when builders were more focused on larger-sized homes, Yun adds.

Builder incentives also could be drawing buyers in. About 30% of builders say they cut their home prices in April, with the average price reduction at 5%, according to the NAHB and Wells Fargo Housing Market Index. About 61% of builders say they also used sales incentives this month, like with mortgage rate buy downs or upgrades.

“The new home sales data shows that demand continues to be present in the market, provided affordability conditions permit a purchase,” says Buddy Hughes, NAHB’s chairman. “An increase in economic certainty would be a big boost to future sales conditions.”

Uncertainty looms, however, particularly around the potential impact new tariff policies could have on the new-home industry. Sixty percent of builders reported that suppliers have already increased or have announced tariff-related price increases for materials — an uptick of 6.3%, on average. Builders estimate that recent tariff actions could increase the cost of a newly built home by about $10,900 per home.

“Builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials — at a time when the industry continues to grapple with labor shortages and a lack of buildable lots,” Hughes said.

© 2025 National Association of Realtors® (NAR)

U.S. Market: Existing-Home Sales Slip 5.9% in March

 WASHINGTON — Existing-home sales descended in March, according to the National Association of Realtors®. Sales slid in all four major U.S. regions. Year-over-year, sales dropped in the Midwest and South, increased in the West and were unchanged in the Northeast.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – fell 5.9% from February to a seasonally adjusted annual rate of 4.02 million in March. Year-over-year, sales drew back 2.4% (down from 4.12 million in March 2024).

"Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates," said NAR Chief Economist Lawrence Yun. "Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society."

Total housing inventory registered at the end of March was 1.33 million units, up 8.1% from February and 19.8% from one year ago (1.11 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, up from 3.5 months in February and 3.2 months in March 2024.

The median existing home price for all housing types in March was $403,700, up 2.7% from one year ago ($392,900). All four U.S. regions registered price increases.

"In a stark contrast to the stock and bond markets, household wealth in residential real estate continues to reach new heights," Yun said. "With mortgage delinquencies at near-historical lows, the housing market is on solid footing. A small deceleration in home price gains, which was slightly below wage-growth increases in March, would be a welcome improvement for affordability. With real estate asset valuation at $52 trillion, according to the Federal Reserve Flow of Funds, each percentage point gain in home prices adds more than $500 billion to the household balance sheet."

Realtors® Confidence Index

According to the monthly Realtors® Confidence Index, properties typically remained on the market for 36 days in March, down from 42 days in February but up from 33 days in March 2024.

First-time buyers were responsible for 32% of sales in March, up from 31% in February 2025 and identical to March 2024. NAR's 2024 Profile of Home Buyers and Sellers – released November 20244 – found that the annual share of first-time buyers was 24%, the lowest ever recorded.

Cash sales accounted for 26% of transactions in March, down from 32% in February and 28% in March 2024.

Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in March, down from 16% in February and unchanged from March 2024.

Distressed sales – foreclosures and short sales – represented 3% of sales in March, unchanged from February and up from 2% the prior year.

Mortgage rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.83% as of April 17. That's up from 6.62% one week before but down from 7.1% one year ago.

Single-family and condo/co-op sales

Single-family home sales retreated 6.4% to a seasonally adjusted annual rate of 3.64 million in March, down 2.2% from the previous year. The median existing single-family home price was $408,000 in March, up 2.9% from March 2024.

Existing condominium and co-op sales were unchanged in March at a seasonally adjusted annual rate of 380,000 units, down 5.0% from one year ago. The median existing condo price was $363,000 in March, up 1.5% from the prior year ($357,700).

Regional breakdown

In March, existing-home sales in the Northeast declined 2.0% from February to an annual rate of 490,000, identical to March 2024. The median price in the Northeast was $468,000, up 7.7% from one year earlier.

In the Midwest, existing-home sales waned 5.0% in March to an annual rate of 950,000, down 3.1% from the previous year. The median price in the Midwest was $302,100, up 3.5% from March 2024.

Existing home sales in the South contracted 5.7% from February to an annual rate of 1.81 million in March, down 4.2% from one year before. The median price in the South was $360,400, up 0.6% from last year.

In the West, existing-home sales plunged 9.4% in March to an annual rate of 770,000, up 1.3% from a year ago. The median price in the West was $621,200, up 2.6% from March 2024.

© 2024 National Association of Realtors® (NAR)

Florida’s Housing Market: New Listings, Supply Up

 By Marla Martin

ORLANDO, Fla. — Florida’s housing market in March and the first quarter (1Q) of 2025 reported more new listings, increased for-sale inventory (active listings) and easing median prices compared to a year ago, according to Florida Realtors®’ latest housing data.

“After years of incredibly low inventory and ever-increasing home prices across Florida, we are experiencing a normalization of the real estate market in our state,” said 2025 Florida Realtors President Tim Weisheyer, broker-owner, Dream Builders Realty and dbrCommercial Real Estate Services in Central Florida. “This is great news for homebuyers that have been sitting on the sidelines as increased for-sale inventory and the easing of median prices brings more opportunities in Florida’s housing market.

“Buying a home is always a long-term decision that requires expert guidance to navigate the process and understand the nuances of local market dynamics; a Realtor® will put their knowledge of local market conditions and expertise to work to help consumers find the best opportunities to achieve their version of the American dream.”

Last month, closed sales of existing single-family homes statewide totaled 23,128, down 1.3% year-over-year, while existing condo-townhouse sales totaled 8,414, down 9.8% over March 2024. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Florida Realtors Chief Economist Dr. Brad O’Connor said “While closed sales of Florida single-family homes were down year-over-year for the second consecutive month in March, it was only by 1.3%. That’s a big improvement over February’s more than 7% decline. What’s more, the number of single-family homes that went under contract in March was actually up year-over-year by over a half of a percent.”

He cited mortgage rates as an influencing factor: “One reason for this is likely that we had the average 30-year fixed mortgage rate hovering at around 6.75% for most of March, in stark contrast to January and February when it was largely north of 7%. That bodes well for closed sales in April, but this boost is going to be short-lived, as mortgage rates have since returned to those 7% levels.

“Demand remains relatively weaker over in the condo and townhouse property type category,” O’Connor said. “Closed sales in this category were down 9.8% compared to a year ago in March.”

For 1Q 2025, statewide existing single-family home sales totaled 56,209, down 1.9% from 1Q 2024, while statewide existing condo-townhouse sales totaled 20,704, down 9.2% from the same quarter a year ago.

The statewide median sales price for single-family existing homes in March was $412,500, down 1.9% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $315,000, down 4.5% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

For 1Q 2025, the statewide median price for single-family homes was $414,555, only slightly down (0.1%) year-over-year; the statewide median price for condo-townhouse properties was $315,000, down 3.2% from the same quarter a year earlier.

On the supply side of the market, new listings for existing single-family homes were up 10.8% last month compared to March 2024 and up 9.6% for 1Q 2025 compared to a year earlier. New listings for condo-townhouse units in March were up 5.8% year-over-year, and up 4.1% in the 1Q compared to 1Q 2024.

Inventory (active listings) for both property categories rose in March as well as for 1Q 2025. Single-family existing homes were at a 5.5-months’ supply while condo-townhouse properties were at a 10.1-months’ supply for both timeframes.

© 2025 Florida Realtors®

Florida Consumer Sentiment Drops in February

 Floridians’ opinions about current economic conditions were mixed. Their views of future economic conditions are more pessimistic, a UF analysis found.

GAINESVILLE, Fla. — After three consecutive months of increases following the presidential election, consumer sentiment among Floridians dropped 2.6 points in February, down from a revised figure of 86.9 in January. National sentiment stands out with a sharp decline of seven points.

“The decline in consumer sentiment is primarily driven by Floridians’ pessimistic expectations about future economic outlooks, which have decreased for the second consecutive month. In particular, expectations for the U.S. economy dropped sharply, nearly reversing the gains seen since the presidential election in November,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

“Several factors are contributing to this growing pessimism, with the potential impact of tariffs likely at the top of the list, particularly through their effect on prices. This has led to higher inflation expectations. While tariffs on Canada and Mexico were postponed in February, they are now expected to take effect in March. Tariffs on China were imposed in February, and further increases are under consideration. Additionally, inflation remains above the Fed’s target, delaying any prospects of interest rate cuts in the near future,” Sandoval added.

Among the five components that make up the index, four decreased and one increased. Floridians’ opinions about current economic conditions were mixed. Opinions of personal financial situations now compared with a year ago increased 5.5 points, rising from 62.6 to 68.1. These views were shared broadly across sociodemographic groups and were particularly strong among men and people aged 60 and over. In contrast, opinions on whether now is a good time to buy a major household item, such as an appliance, decreased slightly three-tenths of a point from 77.9 to 77.6. However, these views varied across sociodemographic groups, with men, people younger than 60, and people with an annual income above $50,000 expressing more favorable opinions.

Floridians’ views of future economic conditions in February forecast a pessimistic outlook, as all three components deteriorated substantially. Expectations of personal financial situations a year from now declined 3.9 points from 102.2 to 98.3. These negative views were shared by Floridians across sociodemographic groups, except for people with an annual income under $50,000, whose reading showed slightly more optimistic expectations. Outlooks of U.S. economic conditions over the next year experienced the steepest decline, plummeting 8.6 points from 96.5 to 87.9. Additionally, expectations of U.S. economic conditions over the next five years fell 5.8 points from 95.1to 89.3. Notably, these downward trends were observed across all sociodemographic groups.

“Federal civilian employment in Florida totals nearly one hundred thousand workers, but it is unclear how many will be affected by the recent layoffs. While the overall job market remains solid, job and wage losses among federal government employees could reduce demand and consumption, potentially affecting Florida businesses. Ultimately, the economic impact will depend on the scale of the job cuts and the ripple effect on contractors and consumer spending,” said Sandoval.

“Looking ahead, we anticipate a decline in consumer sentiment, driven by the potential for new tariffs and ongoing workforce reductions resulting from federal government layoffs. Consumer sentiment in March will offer further insight into whether this shift points to a longer-term downward trend in the months ahead,” said Sandoval.

Conducted Jan. 1 to Feb. 27, the UF study reflects the responses of 279 individuals who were reached on cellphones and 271 individuals reached through an online panel, a total of 550 individuals, representing a demographic cross section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a two, the highest is 150.

Source: University of Florida

© 2025 Florida Realtors®

Understanding Florida's Transaction Broker Role

By Richard Swank

Florida law presumes brokers as transaction brokers unless a disclosure is made. This role allows limited representation, no fiduciary duty and limited confidentiality.

ORLANDO, Fla. — Florida law states that unless a residential real estate broker provides a single agent or no brokerage relationship disclosure to their customer, the broker is presumed to be a transaction broker. But what does that mean?

Transaction broker is defined in Section 475.01(1)(l), Florida Statutes. A transaction broker can represent a seller, a buyer or both in a real estate transaction but does not represent either in a fiduciary capacity. Accordingly, the seller and the buyer give up their rights to undivided loyalty from the licensee. The limited representation allows the licensee to facilitate the transaction, but the licensee cannot work to the detriment of one party over the other if representing both.

Section 475.278(2), Florida Statutes, sets forth the duties of a transaction broker. A transaction broker must deal honestly and fairly, account for all funds, use skill, care, and diligence and disclose latent defects. In addition, a transaction broker must present all offers and counteroffers in a timely manner, unless their customer has instructed otherwise in writing. 

Finally, a transaction broker has the duty of limited confidentiality. The limits in the statute include disclosing that a party will pay more or accept less than presented in the listing or offers, a party’s motivation, private details of financing and anything else the customer asks the broker to keep confidential.

When reviewing these duties, it’s important to note that some of them, such as the duty of dealing honestly and fairly and the duty of disclosing latent defects, are universal to all three of Florida’s brokerage relationships. Where a transaction broker differs from, for example, a single agent, is that the transaction broker doesn’t have a duty of loyalty and only a limited duty of confidentiality.

Some brokers ask, “I’m a transaction broker. Doesn’t that mean I represent the transaction?” As you can see from the statutory definition and duties, that answer is no.  A transaction broker represents either or both of the parties, but the broker does not represent the transaction. If the broker is representing both parties, the broker facilitates the transaction but does not represent it.

Though the nuances of transaction broker practice can be tricky, ultimately it provides a great deal of flexibility to a real estate broker. If the broker identifies a buyer, the broker can represent that buyer in the same transaction without additional disclosure paperwork. Transaction brokers should be mindful of complying with Article 7 of the National Association of Realtors®’ Code of Ethics, which requires disclosure and consent if the broker is receiving compensation from more than one party. But the representation of both parties in a transaction is presumed to be permitted as a transaction broker.

Finally, one word of caution: When representing themselves in a transaction, a broker cannot be a transaction broker. Almost by definition, a person will always have their own best interests at heart when buying or selling their own property. The presumption of being a transaction broker should not mislead a broker into forming a relationship with the other party and its inherent conflicts of interest.

Richard Swank is an Associate General Counsel for Florida Realtors.

Note: Information deemed accurate on date of publication.

© 2025 Florida Realtors® 

January U.S. New Home Sales Fall

 By Amy Connolly

New home sales dropped 10.5% in January as high mortgage rates, affordability issues and severe winter weather kept buyers on the sidelines.

WASHINGTON — New homes sales fell in January as mortgage rates remain high and affordability keeps buyers on the sidelines, according to data from the U.S. Commerce Department's Census Bureau.

Sales of single-family homes fell 10.5% in January from December to a seasonally adjusted annual pace of 657,000 units. The January sales were down 1.1% from a year earlier.  

The median sales price of a newly built home in January was 2025 was $446,300. The average sales price was $510,000.

Economists said frigid temperatures in January across the country also played a role in the decline.

"The large fall in new home sales in January was to be expected given the disruption from the unseasonably severe winter weather," Bradley Saunders, the North America economist for Capital Economics, told Realtor.com.

© 2025 Florida Realtors®

Typical Buyer’s Down Payment is 16%

Redfin: The typical U.S. homebuyer now puts down roughly $63,000, about $4,000 more than last year, because of a jump in home prices.

SEATTLE — The typical U.S. homebuyer’s down payment was equal to 16.3% of the purchase price in December, up from 15% a year earlier, according to a new report from the real estate brokerage Redfin. In dollar terms, the typical homebuyer’s down payment was $63,188. That’s up 7.5% from a year earlier, the biggest increase in five months.

The data in Redfin’s report is from the company’s analysis of county records across 40 of the most populous U.S. metropolitan areas. December 2024 is the most recent month for which data is available.

The amount of money homebuyers are putting down is higher than a year ago mainly because home prices are up: A higher price means buyers typically make a bigger deposit. The median U.S. home-sale price rose 6.3% year over year in December, to roughly $428,000.

The percentage buyers are putting down is relatively high because mortgage rates are elevated near 7%, and some buyers are putting down more up front to bring down their monthly interest payments.

Down payments are no longer seeing the wild swings they were during the pandemic. The median U.S. down payment rose from the 10% range before the pandemic to the 15% range in 2021, which was the height of the pandemic homebuying frenzy. Mortgage rates also drove that increase, but the dynamics were very different then: Record-low rates of under 3% were fueling intense bidding wars among homebuyers, which motivated many to put more money down to make their offers stand out in a competitive environment.

“While a larger down payment can lower monthly mortgage payments and help strengthen an offer in a bidding war, bigger isn’t always better,” said Sheharyar Bokhari, a senior economist at Redfin. “Housing markets in much of the country have started tilting in buyers’ favor, allowing buyers to set the terms they want. That means house hunters don’t necessarily need to break the bank for a huge down payment if it makes more financial sense to save some money for things like future home renovations or other investments.”

Fewer homebuyers pay in cash

Roughly three in 10 (30.6%) U.S. homes were bought with cash in December. That’s down from 33.8% a year earlier, but up from September’s three-year low of 28.6%.

The share of buyers paying with cash peaked in 2023 because that’s when mortgage rates peaked, hitting a two-decade high of nearly 8%. Buyers who can afford to pay with cash are more inclined to do so when rates are high because they’re avoiding high monthly interest payments, and saving money in the long run.

Mortgage rates have since come down slightly and evened out in the 6% to 7% range, bringing down the share of buyers who are paying in all cash. Additionally, investors–who make up a big share of all-cash buyers–are purchasing fewer homes.

On an annual basis, 32.6% of 2024’s home sales were made with cash, the lowest share in three years.

Little change in FHA loan use

Roughly one of every seven (15%) mortgaged home sales used an FHA loan in December, down slightly from 15.9% a year earlier but up from mid-2022’s decade-low of roughly 10%.

The share of mortgaged home sales using a VA loan rose to 6.7%, from 6.2% a year earlier.

More homebuyers are using FHA loans now than in late 2021 and early 2022, when the ultra-competitive environment favored buyers with higher down payments and more ability to prove their financial security. Now, buyers are more likely to get an offer using an FHA loan accepted. Additionally, higher home prices mean more buyers find it hard to afford large down payments, making FHA loans more popular.

Conventional loans are by far the most common type of mortgage. Nearly four in five (78.4%) borrowers used a conventional loan in December, little changed from 77.9% a year earlier.

Metro-level highlights

The data below is from December 2024, the most recent month for which data is available, and covers 40 of the most populous U.S. metros.

Down payments

• Down-payment percentages were highest in San Francisco, where the typical homebuyer put down 26.4% of the purchase price. It’s followed by two other California metros: Anaheim and San Jose, at 25% apiece.
• They were lowest in Virginia Beach, VA (3%), Detroit (6.5%) and Baltimore (8.5%).

FHA loans

• FHA loans were most prevalent in Riverside, CA, where 25.4% of mortgaged home sales used one. Next come Providence, RI (25.1%) and Las Vegas (24.3%).
• They were least prevalent in California: San Francisco (2.1%), San Jose (2.2%) and Anaheim (5%).

VA loans

• VA loans were most prevalent in Virginia Beach, VA (39%), Jacksonville (16.3%) and Washington, D.C. (14.3%). Those metros all have a large military presence.
• They were least prevalent in the Bay Area: San Jose (less than 1%), San Francisco (1.5%) and Oakland (1.8%).

All cash

• All-cash home purchases were most prevalent in West Palm Beach, FL, where more than half (50.4%) of homes were bought in cash. Next came Cleveland (46%) and Jacksonville (39.3%).
• They were least prevalent in Oakland (16.2%), San Jose (17.8%) and Seattle (18.8%).

Source: Redfin

© 2025 Florida Realtors®

FHFA: U.S. House Prices Rose 4.5% in 2024

 Most states and metro areas saw home price growth last year. Prices increased more in areas with tighter inventory.

WASHINGTON – U.S. house prices rose 4.5% between the fourth quarter of 2023 and the fourth quarter of 2024, according to the Federal Housing Finance Agency House Price Index (FHFA HPI). House prices were up 1.4% compared to the third quarter of 2024. FHFA’s seasonally adjusted monthly index for December was up 0.4% from November.

“U.S. house prices grew at a slightly higher rate in the fourth quarter after three straight previous quarters of weaker appreciation,” said Dr. Anju Vajja, deputy director for FHFA’s Division of Research and Statistics. “The price growth accelerated during the quarter as the inventory of homes for sale tightened even further.”

Significant findings

Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.

• House prices rose in 49 states between the fourth quarter of 2023 and the fourth quarter of 2024. The five states with the highest annual appreciation were 1) Connecticut, 8.3%; 2) New Jersey, 8.3%; 3) Wyoming, 8.3%; 4) Vermont, 8.1%; and 5) Rhode Island, 7.6%. House prices declined in Mississippi by 0.2%.
• House prices rose in 92 of the 100 largest metropolitan areas over the previous four quarters.  The annual price increase was the greatest in urban Honolulu, HI at 18.7%. The metropolitan area that experienced the most significant price decline was Cape Coral-Fort Myers, FL at 6.3%.
• All nine census divisions had positive house price changes year-over-year. The Middle Atlantic division recorded the strongest appreciation, posting a 7.1% increase from the fourth quarter of 2023 to the fourth quarter of 2024. The West South Central division recorded the smallest four-quarter appreciation, at 2.3%.

The FHFA HPI is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities. It incorporates tens of millions of home sales and offers insights about house price changes at the national, census division, state, metro area, county, ZIP code and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.

Source: Federal Housing Finance Agency

© 2025 Florida Realtors®

Meet the AI Revolution for Luxury Homes

 The latest smart home technology offers greater personalization, advanced automation and seamless integration across every part of a home.

NEW YORK – When selling a luxury home, forget asking Alexa or Google turn on the lights. Those systems are flip phones compared to the newest smart-home tech. The most advanced generation of smart home technology is powered by more advanced AI, turning luxury properties into uber-smart homes.

AI-driven systems like Josh.ai and Crestron are changing what’s possible, offering greater personalization, advanced automation, and seamless integration across every part of a home.

Luxury buyers expect more than convenience. They can now purchase homes that anticipate their needs. Here’s a look at the hottest smart home tech for affluent buyers and how it can help elevate your luxury listings.

Beyond voice commands: AI-powered home control

New technology is moving beyond the role of simple voice assistants to AI-powered home control systems that learn independently and adapt.

Josh.ai understands natural language and adapts to user behavior over time. If a homeowner dims the lights at sunset, plays jazz in the evening, and turns on the fireplace, Josh.ai picks up on the pattern and does it automatically. It’s also privacy-focused: it keeps your data secure without selling your personal information.

Crestron’s home automation system connects lighting, security, climate, and video and audio systems, removing the need for multiple apps or remotes.

These systems don’t just follow commands, they anticipate them, creating a genuinely intuitive home experience.

AI-driven security and biometric access

Security isn’t just about keeping a home safe. For high-end buyers, it’s about convenience and control. AI-powered security systems are eliminating passwords, codes, and keys.

Face-recognition door access systems from Swiftlane or Lockly let homeowners open locked doors with a glance. The most advanced models offer adjustable access levels – time restrictions or temporary access that expires – based on who’s at the door.

AI-enhanced security cameras like Deep Sentinel pair AI with human intervention to analyze behavior instead of just detecting motion; it filters out false alarms – like blowing leaves or animals in your yard – and detects real threats.

These features streamline security while adding sophistication, giving buyers peace of mind without any extra effort.

Smarter windows and climate control

Luxury homes are embracing AI for effortless energy efficiency and climate comfort.

Smart glass like View Smart Windows tints automatically based on light levels, keeping spaces comfortable without blinds or shades. 

AI-driven climate control systems like the Nest thermostat that learns from your behavior can be paired with Flair Smart Vents to intelligently redirect airflow to improve room temperature consistency throughout the home.

The Ecobee Smart Thermostat with voice control also features a hands-free calling intercom. Crestron’s Horizon smart thermostats, which integrate with Josh.ai and multi-zone heating and cooling systems, adjust the temperature based on room occupancy, outdoor weather, and personal preferences.

Buyers looking for a high-tech, energy-conscious home will see these features as both practical and luxurious.

AI-powered kitchens and home automation

Luxury kitchens are getting a serious upgrade with AI-powered appliances that make daily life easier.

Miele’s Dialog Oven scans food and adjusts temperature and cooking time in real-time, guaranteeing perfect results. This new tech delivers new cooking methods, such as “cooking a fish in ice or veal tenderloin in beeswax without melting ice or wax.”

LG’s InstaView fridge with AI Vision automatically recognizes “stored food items, suggesting recipes based on available ingredients and user preferences, and tracking inventory and expiration date.”

Wellness and entertainment go high-tech

Many luxury homebuyers will be attracted by a smart home that can also enhance their well-being.

Smart circadian lighting like Ketra works with Lutron lighting controls and shade, changing throughout the day to mimic natural sunlight and improve mood and sleep.

AI-powered home theaters, like the one from Control4, automatically adjust the picture and sound quality, delivering the perfect movie experience.

For buyers who value wellness and entertainment, these features make a home feel both cutting-edge and comfortable.

A word of caution

Even the smartest home is only as reliable as its power and internet connections. When one is down, so is the tech. Luxury buyers investing in these advanced AI-enabled home systems should consider backup solutions to keep systems up and running. A whole-home generator ensures uninterrupted power during outages, while satellite internet services like Starlink provide connectivity even if the local network options go down.

Why smart home technology matters to you as an agent

Smart home technology is moving well beyond simple automation: it’s now adaptive, predictive, and intuitive. Luxury buyers expect smart homes that feature the latest tech. Explaining how these innovations enhance security, energy efficiency, entertainment, and daily life helps you market high-tech homes more effectively. It also lets you connect better with affluent buyers by winning their trust as their advisor and local expert. Because when buyers see a home that thinks for itself, they’re more likely to see the added value.

Source: Tech Helpline

© 2025 Florida Realtors®