April is one of the hottest months to list a home for sale on the market. The spring season is a popular choice to list a home in order to receive the most bang for your buck – but what does the housing market look like in April 2025?
Mortgage Rates Remain Elevated, Affecting Buyer Activity
Mortgage rates have remained above 6% in early 2025, with the average 30-year fixed rate around 6.84% at the end of February. This has impacted affordability and buyer activity. Recent trade tariffs have contributed to economic uncertainty, leading to a 5% decrease in home purchase volumes and an 8.5% drop in mortgage applications, according to the Mortgage Bankers Association.
Home Prices Show Modest Increases Amid Inventory Challenges
Nationally, home prices have seen modest increases. The S&P CoreLogic Case-Shiller Home Price Index reported a 4.1% annual gain in January. However, Zillow forecasts a 1.7% decline in U.S. home prices between March 2025 and March 2026. In Illinois, April median home prices are projected to be $325,000 statewide and $371,522 in the Chicago area.
Economic and Policy Factors Introduce Market Uncertainty
Economic factors, including potential recession risks and international financial tensions, are affecting the housing market. Concerns over China’s potential sale of U.S. mortgage-backed securities could impact mortgage rates and market stability . Additionally, changes at the Federal Housing Finance Agency (FHFA) have raised concerns about potential impacts on borrowing costs and market transparency .
Encinitas Market Trends in March May Continue to April
The Encinitas housing market remained active in March 2025. There were 171 active listings and 17 new listings during the month, showing limited supply. The median sale price was $1,899,000.
Despite the high price point, 179 homes were sold in March, up from 136 a year ago. This 32% increase in sales shows higher demand compared to last year.
Homes sold faster as well. The average time on market was 62 days, down from 84 days in March 2024. This suggests buyers are acting quicker.
Encinitas is in the San Diego County R-1 School District, which includes 22 elementary schools, 14 middle schools, and 5 high schools. The presence of schools may be a factor in steady demand.
Overall, sales volume is up, homes are selling faster, and prices remain high.
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