Real Estate Roundup: March 17, 2025

Weekly Roundup

Mar 17

Leonard Steinberg, Compass Agent

As we move deeper into 2025, the real estate market continues to evolve, presenting new challenges and opportunities. From shifting mortgage rates to economic trends and real estate strategies, here are some key takeaways from the latest industry insights.

Market Trends: A Mixed Bag of Signals

Inflation & Personal Income: The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, showed a 2.5% annual increase, with core PCE at 2.6%. Personal income, however, saw a 0.9% jump—far exceeding expectations—yet consumer spending declined slightly. These numbers highlight a cautious approach from consumers despite wage growth.

Mortgage Rate Movements: The 30-year fixed mortgage rate has been fluctuating, recently settling at 6.27%. While this is lower than earlier peaks, affordability remains a concern. The good news? A dip in the 10-year Treasury yield to 4.2% could provide further relief for mortgage borrowers.
Commercial Real Estate Struggles: A wave of government cost-cutting is putting pressure on commercial real estate. The U.S. General Services Administration, responsible for leasing office spaces, is reducing its footprint, putting billions in commercial mortgage-backed securities at risk. Could this be an opportunity for conversions to residential use?
Investor Activity in Residential Real Estate: Investors are pulling back in key markets like Orlando, Miami, and Atlanta. This shift could ease competition for regular homebuyers, potentially stabilizing price growth in these areas.

Real Estate Strategies & Tips

Reverse Prospecting for Agents: One of the most valuable tools for real estate professionals today is Reverse Prospecting. This feature allows agents to track which buyers and agents have shown interest in a property, providing invaluable insights to close deals faster.

Compass Make Me Sell Initiative: For homeowners considering selling, the "Make Me Sell" program allows them to input their aspirational sales price and gauge market interest without formally listing. With over 10,000 properties in this database, this tool offers a unique edge to sellers.
The Importance of Listening in Business: One of the most underrated skills in real estate is active listening. Whether dealing with clients, negotiating deals, or networking, truly hearing what others say (and don’t say) can make all the difference. Key takeaways:

Observe body language and tone.
Acknowledge the real message behind the words.
Ask clarifying questions to uncover motivations.

Luxury & Lifestyle Trends

High-Stakes Bidding in Silicon Valley: The market in Sunnyvale and Cupertino is on fire, with some homes selling for over $1 million above asking price. This signals strong demand in tech-heavy regions.

The Rise of Multi-Family Housing: Minneapolis and Austin are leading the way in zoning reform to allow for greater density. The result? Slower rent growth compared to other cities, proving that smart policy changes can ease housing shortages.
Luxury Market Moves: High-end real estate continues to attract attention, with celebrity homes and ultra-luxe properties making headlines. Notably, a record-breaking $45M sale on Palm Island in Miami Beach underscores the ongoing strength of prime luxury markets.

Final Thoughts: The Power of Adaptability

In a rapidly changing market, adaptability is key. Whether you're an agent, investor, or homebuyer, staying informed on economic trends, utilizing cutting-edge tools, and adjusting strategies accordingly can help you navigate the landscape successfully. As we continue through 2025, those who are prepared will find the greatest opportunities.

Have questions about the market? Let's connect and explore the best strategies for your real estate goals.

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Compass does not recommend one particular strategy or guarantee of results.*