March 2025 Real Estate Market Update

March 18, 2025

All Real Estate News

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Video Update

Full Report

Smiling man in a dark suit, white shirt, and blue tie.

^{June 2024 Real Estate Market Update}

^{Written By: Ivan Marquez}

^{Executive Assistant, Hum Real Estate}

FULL REPORT

This month's report offers insights into the current real estate market - highlighting key trends such as home prices and mortgage rates.

Home Prices

Nationally, home price growth has remained relatively flat since January of last year.

Bar chart of monthly home value growth in 2024, ranging from 0.1% in July to 0.5% in February and December.

Regionally, home price appreciation has varied more significantly, with some areas experiencing greater month-over-month increases than others. This highlights the importance of understanding your local market.

Bar chart showing December 2024 monthly home price changes across U.S. regions.

Locally, the median listing price has been trending above the national average for 7 months - a great sign for the health of the Tallahassee market.

Line chart comparing monthly local and national median listing prices in Tallahassee, January 2024 to February 2025.

Since 2019, home price growth has shifted dramatically. After a sharp rise during the pandemic, prices have moderated to healthier, more stable levels - another positive sign for real estate.

Chart showing 20-city home price growth peaking in 2022, falling near zero in 2023, then recovering.

Home price forecasts for 2025 predict more moderate growth, averaging around 2.7%. Most experts expect appreciation to fall within the 3-4% range, reflecting a return to a healthier, more typical market and better conditions for buyers.

Chart of 2025 home price appreciation forecasts, ranging from 4.9% at Wells Fargo to -2.0% at Morgan Stanley.

Seeing fewer home price reductions is a national trend and further points to shifting marketing conditions. Although Tallahassee is following the national trend of home price reductions, locally we are seeing fewer reductions than the country overall - another great sign for the local market.

Chart of monthly home price reductions in Tallahassee and nationally, January 2024 to February 2025.

Mortgage Rates

Mortgage rates are starting to decline after peaking around 7% in mid-January. Over the past several weeks, rates have eased slightly, offering some relief as the buyer spring market approaches.

Line chart showing 2025 30-year fixed mortgage rates peaking in mid-January, then declining through February.

Furthermore, mortgage rates are declining faster than previously expected. We saw about 6.7% in early March, and are seeing predictions around 6.5% by year-end. While volatility is expected, this dip could offer relief for buyers entering the real estate market.

Chart compares the 6.70% current mortgage rate with 2025 forecasts declining from 6.97% in Q1 to 6.53% in Q4.

Inflation eased slightly in February but remains above the Federal Reserve's 2% target. This decline has helped lower mortgage rates, and further easing could even more positively impact the market.

Chart of PCE inflation, peaking at 5.3% in March 2022 and falling to 2.6% in January 2025.