Housing Market’s About To Crash?!? Read This First

Lately, it feels like a lot of people have been asking the same question: “Is the housing market about to crash?”

If you’ve been scrolling through social media, watching the news, or listen to any number of podcasts, you might be hearing some... concerning opinions floating around. No wonder 70% of Americans are worried about a housing crash in 2025 (according to data from Clever Real Estate).

But before you hit the brakes on your plans to buy or sell a home, take a deep breath and let's walk through some of those details. The truth is: the housing market isn’t about to crash – it’s just shifting from a CRAZY seller's market to a more balanced Buyer's AND Seller's market - and that shift can actually work in your favor.

Today’s Inventory (or lack thereof) is Keeping the Housing Market from Crashing

Mark Fleming, Chief Economist at First American, says:

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

Think about it. If there’s a shortage of something – like tickets to a popular concert – prices go up. That’s what’s been happening with homes. We still have a shortage of supply and too many buyers. Not enough homes and too many buyers just pushed prices higher.

Now, check out the white line for 2025 in the graph below. Even though the number of homes for sale is climbing, data from Realtor.com shows we’re still well below normal levels (what a "normal" supply should be based on number of people wanting to buy) (shown in gray):

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

More Homes for Sale Means Price Growth Is Easing

As more homes become available, it takes some of the intense upward pressure off home price growth – leading to healthier price appreciation. Less squeeze on the inventory means the pressure building and forcing these prices up unusually fast is easing - so while prices aren’t falling nationally, growing inventory means they also aren’t rising as fast as they were. What we’re seeing is price moderation (see graph below):

Breaking it down: this means prices will continue going up in most areas, but at a more steady, healthier level - not the sky-rocketing increases some people have grown accustomed to. That’s good news for anyone who’s been trying to figure out when to buy and then wanting to take a minute to breathe!

Of course, prices and inventory are going to vary by local market. So, talk to your agent (*ahem*) to find out what’s happening where you live.

Bottom Line

Don’t let the click-bait or talking heads on Social Media scare you. Most experts agree that a housing market crash is unlikely in 2025. And even for the foreseeable future. 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 heading into a housing market that’s healthier and more balanced, with slower price growth and more opportunity - which is a GOOD THING.

Give me a call or shoot me a text - let's talk about how this market is WIDE OPEN with opportunities for you!