Due to stubbornly high mortgage rates, a greater share of international home buyers paid cash—47% compared to 28% among all buyers.
Another important provision in the OBBBA raises the SALT deduction cap from $10,000 to $40,000 for taxpayers earning less than $500,000, effective from 2025 to 2029, before reverting to $10,000 thereafter.
Leasing activity surged this quarter to over 360,000 square feet, a 45% increase from the first quarter of this year, with renewals representing 57% of executed transactions.
“Home buyers are slowly entering the market,” said NAR Chief Economist Lawrence Yun.
Reviewing February’s closed sales of single-family homes, only Rockland County and The Bronx saw gains of 7.1% and 4.2%, respectively.
For the first time since 2016, new construction activity outpaced household formations. Yet, the nation still faces a supply shortfall of 3.8 million homes.
It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months.
In January, existing-home sales in the Northeast fell 5.7% from December to an annual rate of 500,000, up 4.2% from January 2024.
Inventory for almost all property types declined in all regions in January, but Rockland County saw a huge co-op inventory gain of 63.6% and 29.9% for condos.
In the past five years, from 2019 to 2024, the median home price rose by 49.9%.
The highest number of closed sales occurred in Suffolk County with 12,913, followed by Nassau County with 9,748, and Westchester County with 7,127.
Sullivan County’s December sales of single-family homes increased by 49.1%—the highest in the six-county region.
Contract activity fell more sharply in the high-priced regions of the Northeast and West, where elevated mortgage rates have appreciably cut affordability.
U.S. Existing-Home Sales Rose 2.2% in December
The Midwest, South and West experienced month-over-month gains in transactions, while the Northeast decreased.
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