US Housing Market Gains $2.5 Trillion, CoStar Bids $1.72 Billion for Domain, Fannie Mae Forecasts Strong 2025 Economy

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US Housing Market Gains $2.5 Trillion

In 2024, the combined value of U.S. homes surged by $2.5 trillion, reaching a total of $49.7 trillion, according to a new report from Redfin. This marks a 5.2% growth from the previous year, although it’s the slowest increase since 2019. Despite the slower pace, home values continue to climb, with prices ticking up every month. Redfin’s Chief Economist, Chen Zhao, notes that while there are more homes for sale than in recent years, the competition remains fierce, especially in markets with fewer listings.

The fastest-growing areas in home value were two upstate New York metros: Albany and Rochester, which saw increases of 11.3% and 11.2%, respectively. These gains were driven by a shortage of homes for sale in the region. On the other hand, Florida metros experienced slower growth, with areas like Cape Coral and North Port even seeing declines in home value.

Meanwhile, millennials now own over 20% of U.S. homes, with their share growing significantly—up 18.8% year over year, bringing their total home value to $9.7 trillion. This is nearly four times the rate of growth seen among baby boomers.

For the seventh consecutive year, rural home values outpaced those in urban and suburban areas, rising 6.4%. In contrast, suburban homes increased 5.1%, and urban homes grew by 4.9%.

Source: Link

CoStar Bids $1.72 Billion for Domain

U.S. real estate firm CoStar is reportedly preparing a $1.72 billion bid for Australian property classifieds company, Domain Holdings. Sources say CoStar is looking to offer a $4.20 per share, a 34.6% premium over Domain’s most recent closing price. CoStar has already acquired up to 19% of Domain’s shares, signaling a potential full takeover.

Domain, which is about 60% owned by Australian media giant Nine Entertainment, has not commented on the bid. CoStar, listed on the Nasdaq, would be making its first move into the Australian market with this acquisition.

Domain recently reported a 28.3% rise in half-year profit, and its shares have increased by 23% this year.

Source: Link

Fannie Mae Forecasts Strong 2025 Economy

The U.S. economy enters 2025 on solid footing, with strong momentum in key areas like GDP, labor, and inflation, according to Fannie Mae’s February economic report. The group expects GDP to grow 2.2% year-over-year, while inflation is now forecast to end 2025 at 2.8%, up slightly from the previous estimate. This increase is largely due to higher-than-expected inflation and new trade tariffs on imports from China, which may slightly impact growth.

Mortgage rates are expected to end 2025 at 6.6%, a slight upward revision, but the forecast remains volatile, with potential for fluctuations driven by trade policies and economic data. Fannie Mae’s report also anticipates a modest increase in existing home sales, though they’ll still be 22% below 2019 levels.

As Kim Betancourt, Vice President of Fannie Mae’s Economic Research, notes, any changes in mortgage rates could impact affordability and housing activity, especially if rates drop, boosting market activity.

Source: Link

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