🏡 Are We in a Recession? What It Means for Home Prices in 2025

With ongoing economic uncertainties, many are wondering: Are we in a recession? And if so, what does that mean for home values?

📉 Understanding Recessions and Home Prices

Historically, recessions don't always lead to falling home prices. In fact, in four of the last six U.S. recessions, home values increased. The exceptions were:

• Early 1990s Recession: Home prices dipped slightly.

• 2008 Financial Crisis: A significant drop of nearly 20% in home values.

The 2008 crisis was unique due to factors like subprime lending and excessive housing supply. Today's market conditions are different, with stricter lending standards and limited inventory.

🏠 Current Market Trends

• Home Prices: As of March 2025, the median home-sale price in the U.S. was $403,700, marking the 21st consecutive month of year-over-year increases.

• Mortgage Rates: Rates remain elevated, with the 30-year fixed mortgage averaging 6.8% in April 2025.

• Buyer Behavior: Economic concerns have led to decreased mortgage applications and increased price reductions by sellers.

🤔 What This Means for Buyers and Sellers

For Buyers:

• Opportunities: More listings and potential price negotiations.

• Considerations: Ensure financial stability and be prepared for higher interest rates.

For Sellers:

• Challenges: Longer time on market and potential need for price adjustments.

• Strategies: Highlight unique property features and be open to negotiations.

🧠 Final Thoughts

While economic indicators suggest caution, the housing market remains resilient. Whether you're buying or selling, understanding the current landscape and working with experienced professionals can help navigate these times effectively. Hit me up to discuss your situation - Paul Linn 317-629-0070