Lately, it seems like everyone is 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 some dramatic headlines. So it’s not surprising that a recent Clever Real Estate survey found 70% of Americans are worried about a housing crash in 2025.
But before you hit pause on your plans to buy or sell, take a breath. The truth is: the housing market isn’t crashing — it’s shifting. And that shift? It could actually benefit you.
Low Inventory Is Keeping Prices from Crashing
Mark Fleming, Chief Economist at First American, sums it up well:
“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”
Put simply: when something is scarce — like tickets to a hot concert — prices go up. The same applies to housing.
The chart below (white line for 2025) shows how inventory is improving but still falls short of normal levels (gray lines):
In March 2025, we had 892,561 active listings — that’s up nearly 29% year-over-year, but still well below historical norms. That ongoing shortage is keeping home prices from dropping nationally.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“If there’s a shortage, prices simply cannot crash.”
Price Growth Is Slowing — And That’s a Good Thing
Even though prices aren’t falling, they are growing at a slower pace — and that’s good news.
Take a look at the green bars below. Price growth peaked in early 2024 and has been easing ever since:
According to Freddie Mac:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
Translation? Prices are still rising — just not as fast. That means more breathing room for buyers and a more sustainable market overall.
What Does This Mean for You?
Don’t let the headlines scare you. This is not 2008. Experts across the board agree a crash is highly unlikely. As Business Insider recently noted:
“. . . 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 healthier, more balanced market — one with more opportunities for buyers, and continued equity growth for sellers.
Bottom Line
This isn’t the beginning of a crash — it’s the beginning of a shift. And depending on your goals, that could be a very good thing.
Let’s talk about what’s happening in our market. I’ll help you understand how to make the most of these changes — whether you’re thinking of buying, selling, or just staying informed.
