The Housing Market Hotness Index saw a slight increase to 88.17 for the week ending February 16, 2025. However, this uptick offers little indication of a market recovery. The ongoing affordability crisis persists due to stubbornly high mortgage rates and home prices. Buyer hesitancy is further amplified by economic uncertainties surrounding inflation, unemployment, and the overall economic outlook. This is reflected in the 4.9% decline in existing home sales in January 2025 compared to the previous month. Builder confidence has also waned amid concerns about tariffs and rising housing costs.
Regionally, Santa Clara County in California remained the hottest housing market this week, while several Florida counties experienced the least market activity.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
