Do You Think the Housing Market’s About To Crash? Read This First

Lately, a lot of people are asking the same question: “Is the housing market about to crash?”

If you’ve been scrolling social media or watching the news, you’ve probably seen scary headlines. That’s why it’s not surprising that, according to Clever Real Estate, 70% of Americans are worried about a housing crash in 2025.

But before you hit pause on your home goals, take a deep breath. The truth is: the housing market isn’t crashing—it’s shifting. And that shift may actually benefit you.

Today’s Inventory Is Preventing a Crash

Mark Fleming, Chief Economist at First American, explains it well:

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”

Think about it. When something is in short supply—like tickets to a hit concert—prices go up. That’s what’s happening with homes. The shortage of inventory, even with some recent improvement, is still well below normal levels, according to data from Realtor.com.

As Lawrence Yun of the National Association of Realtors puts it:

“...if there’s a shortage, prices simply cannot crash.”

More Inventory=Easing Price Growth

More homes on the market is easing the intense pressure on prices. That’s good news: prices are still rising, but at a healthier, more sustainable rate—a trend referred to as price moderation.

And Freddie Mac expects that moderation to continue in 2025:

“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”

In simple terms: prices are still going up, just not as fast—which makes it more manageable for buyers and gives sellers continued equity growth.

The Local Market Still Matters

All housing is local. So while these national trends point to a healthier market, you’ll want to work with an agent to understand what’s happening in your zip code or neighborhood.

Bottom Line

Don’t let the crash talk scare you. Experts agree that a major drop isn’t coming in 2025. As Business Insider reports:

“Economists who study housing market conditions generally do not expect a crash in 2025 or beyond—unless the economic outlook changes.”

Instead, we’re entering a more balanced, more sustainable housing market—with opportunity for those ready to make a move.

Let’s connect to talk about what’s happening locally and how it affects your goals.