Market Outlook: Q1 Market Report 2025
“While this spring is bringing more inventory, conditions still lean in favor of sellers.”
Source: Terradatum YTD over PYTD % Change
Jan – Dec 2024 compared to Jan – Dec 2023
- *See photos for data
- Definitions:
- Home sales = homes that have sold and closed
- Pending sales = homes that have sold but not yet closed
“…this spring isn’t just another season. It’s a time of possibilities for those ready to make their next move.”
A Look at Our Local Market
In the Berkshire Hathaway Fox & Roach market area, we continue to see more buyers than available homes. As a result, prices are still rising. While this spring is bringing more inventory, conditions still lean in favor of sellers.
Homes that show well and are priced correctly draw attention—and often receive multiple offers. That’s because today’s buyers are looking for value—whether it’s a move-in ready space or a home that fits how they live now. Sellers who understand this have an advantage.
Interest Rates
Rates remain at their lowest levels since December of last year, and aside from the first week of April, are more stable than they were in 2024.
Homeowners who locked in ultra-low rates in recent years are hesitant to give them up. Still, the decision to move isn’t just about interest rates. It should be based on what’s right for you—families grow, jobs change, needs shift. Waiting for lower interest rates while home prices are rising may result in a net zero result.
Navigating the Bigger Picture
It’s no surprise that many people are cautious right now. Between inflation, interest rate questions, and talk of a possible recession, confidence is taking a hit.
If there were to be a recession, it doesn’t automatically mean home prices will fall. Back in 2008, an oversupply of homes drove prices down. Today, we’re dealing with a shortage, so even if the economy slows, prices will, at the very least, stabilize.
- A Recession Does Not Mean Falling Prices
Source: CoreLogic
Home Price Change During the Last 6 Recessions
| Recession Year | Home Price Change |
|----------------|-------------------|
| 1980 | +6.1% |
| 1981 | +3.5% |
| 1991 | -1.9% |
| 2001 | +6.6% |
| 2008 | -19.7% |
| 2020 | +6.0% |
- These numbers highlight that price drops are the exception—not the rule—when economic conditions soften.
*A Recession Means Falling Mortgage Rates
Sources: Fannie Mae, Mortgage Specialists
Mortgage Rate Changes During the Last 6 Recessions
| Recession Year | Mortgage Rate Before Recession | Mortgage Rate After Recession |
|----------------|-------------------------------|------------------------------|
| 1980 | 16.3% | 11.8% |
| 1981 | 18.0% | 13.0% |
| 1991 | 11.0% | 8.8% |
| 2001 | 7.5% | 6.5% |
| 2008 | 6.0% | 5.0% |
| 2020 | 3.8% | 2.8% |
In nearly every case, mortgage rates dropped as the economy entered a recession—giving buyers more power and flexibility.
Why Spring Still Matters
Spring has long been the busiest season in real estate. Warmer weather gets people out looking. Families begin planning moves ahead of the school year and sellers are energized by the thought of showcasing their homes in the best light. This energy fuels the market — with more listings, more activity, and more opportunity for everyone.
The Many Possibilities
Welcome to the Pat Settar Team’s Market Insights, your guide to understanding what’s happening in our local real estate market. Spring reminds us of growth and opportunity — and 2025 is no exception. Whether you’re considering a move or simply staying informed, understanding the current market landscape can help you plan with clarity.
Our Advice to Sellers
If your home is move-in ready and priced right, now’s a great time to list. Serious buyers are out there, and there’s less competition than you might expect.
Our Advice to Buyers
Stay flexible, be prepared, and work closely with your agent. That readiness will make all the difference. Whatever your plans, stay informed and rely on your Pat Settar Team agent. Spring is full of possibility—especially for those ready to take the next step.
All of us at The Pat Settar Team are standing by to help you achieve your real estate goals. Our commitment to you: Everything You Need.
