Will the Housing Market Crash in 2025

What Real Estate Professionals Need to Know About Tariffs, Recession & Interest Rates

With rising tariffs, higher interest rates, and headlines predicting a possible recession, many are asking: Will the housing market crash in 2025? But here's the truth: the real estate market isn’t collapsing—it’s shifting. And in this kind of environment, real estate professionals have a unique opportunity to become the voice of reason and clarity.

In this blog, we break down what’s really happening in the U.S. housing market—and how agents, brokers, and teams can take back control of the narrative with facts, not fear.

Is the Real Estate Market Crashing in 2025?

The short answer? No.

Despite media headlines hinting at a market downturn, the current data tells a very different story. While affordability challenges remain due to rising mortgage rates, the overall housing market remains stable. In fact:

• 83% of U.S. homeowners have a mortgage rate under 6%.

• 40% of homeowners own their home free and clear.

• 29% are considered equity-rich.

These numbers signal financial strength—not signs of an impending crash.

What Real Estate Agents Need to Know About Recession & Housing

Yes, some economists are warning about a potential recession in 2025. But historically, recessions have not been bad for housing prices. Here’s what the past shows us:

• In 4 of the last 6 recessions, home prices actually increased.

• Only in 2008—a financial and lending crisis—did prices crash significantly.

• Recessions often lead to lower mortgage rates, which can spark buying activity.

For real estate agents, this means it’s more important than ever to communicate historical context. Consumers need help separating real risks from recycled fear.

The Impact of Tariffs on Housing & New Construction

Tariffs and global trade policies can increase the cost of materials like lumber, steel, and appliances. This affects new home construction pricing more than resale inventory.

But here’s the silver lining: Over 30% of current home inventory is new construction. Builders are eager to sell existing homes before costs rise further—which presents an opportunity for buyers to act now, before prices adjust upward.

Final Thoughts: Confidence Is Your Competitive Advantage

Yes, the market is different in 2025—but homes are still being bought and sold every day. The key is working with a real estate agent who understands today’s conditions and knows how to guide you through them with clarity and confidence.

Whether you're buying your first home, selling one you've owned for decades, or doing both at once—you deserve a trusted expert on your side.

Not All Agents Are Created Equal—Ask the Right Questions Before You Hire One

Choosing the right real estate agent can make or break your experience in today’s market. That’s why we created the Interview Guide Questions for Buyers and Sellers — a free resource to help you make an informed decision when selecting your agent.

Inside, you’ll get smart, practical questions to ask:

• If you’re selling: What to ask a potential listing agent before you sign a contract

• If you’re buying: What to ask a buyer’s agent to make sure they’re the right fit for your goals

• How to evaluate their local expertise, marketing strategies, negotiation skills, and more

Download the guide here →

• Listing Agent Interview Questions

• Buyers Agent Interview Questions

Don't just hire the first name you see on a sign—interview like a pro and work with someone who can get you the results you deserve.