From Yahoo Finance: 2025-04-04 06:19:00

Home prices continue to climb, with a 4.1% increase in January and a 3.8% increase in February. However, housing inventory is on the rise, which could lead to lower prices. Major real estate organizations predict a slowdown in price growth for 2025, benefiting buyers and sellers alike.

Limited housing inventory has kept prices high, but a 5.1% increase in inventory in February and 17% increase year over year could stabilize or reduce prices. Homeowners have been reluctant to sell due to high mortgage rates, but falling rates may prompt more listings, cooling the market.

Home prices could decline in regions with abundant supply like Texas and Florida, while large metropolitan areas may see growth due to increased demand. Mortgage rates have fallen, potentially prompting more homeowners to list their properties, further increasing supply and cooling the market.

Some experts warn that tariff policies could fuel an economic recession, impacting homebuyer demand and home values. Homeowners have an average of $311,000 in home equity, and accessing this equity through a home equity loan or line of credit could help protect against a potential recession.

Selling before prices drop could lock in a higher sale price, but buying another home at the same time may come at a higher cost. Downsizing could be a good option now, especially without needing a mortgage on a smaller or less expensive home. Consider the possibility of a recession when making real estate decisions.

Read more: Housing market sea change ahead? Buyers hope for a tailwind as sellers face choppy waters