Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 91

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.” An April 2025 survey of economists by the Wall Street Journal indicated that the respondents believed that the probability of a recession in the next twelve months is at 45%, the highest probability indicated by the Wall Street Journal’s survey since late 2023. The economists surveyed by the Wall Street Journal attribute the increased likelihood of a recession in the next twelve months to significant reductions in their expectations for GDP growth, driven by U.S. tariff and trade policy and inflation concerns, among other factors. Tariffs are often considered to be inflationary, including with respect to construction costs, with such higher costs frequently borne by consumers. Higher prices resulting from tariffs may generally lead to a reduction in economic activity, particularly if such increase in prices is not offset by a reduction in interest rates. Moreover, uncertainty with respect to the global trading system has unnerved markets, including the bond market, and may be reflective of broader fears regarding the U.S. and global economic stability.  An economic recession, stagnating economic growth or market disruption may put pressure on the ability of our operating partners, joint ventures, tenants and borrowers to meet their obligations to us, and would likely adversely impact the value of our assets, among other things, any of which could materially adversely affect our results of operations and financial condition.

Single-Family Homes and Residential Mortgage Market. In the first three months of 2025, the residential real estate market remained competitive for home buyers. Data released by the S&P Dow Jones Indices for their S&P CoreLogic Case-Shiller National Home Price NSA Indices for March 2025 showed that, on average, home prices increased 4.7% for the 20-City Composite over March 2024. Additionally, according to the National Association of Realtors (“NAR”), existing home sales in February 2025 increased 4.2% month-over-month, down 1.2% year-over-year. NAR also reported that the median existing-home sales price for all housing types in February 2025 was $398,400, up 3.8% from $383,800 in February 2024. However, the residential real estate market has shown some preliminary signs of potential moderation. NAR notes that total housing inventory as of the end of February 2025 was up 17% year-over-year and that the supply of unsold housing inventory sat at 3.5 months as of the end of