Think the Housing Market’s About To Crash? Read This…

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

With all the dramatic headlines floating around on social media and the news, it’s no wonder — a recent survey from Clever Real Estate found that 70% of Americans are worried about a crash in 2025.

But here’s the deal: the housing market isn’t crashing — it’s shifting. And that shift? It’s actually a good thing.

So, why isn’t the market crashing?

It all comes down to inventory. Mark Fleming, Chief Economist at First American, put it simply:

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

Basically, when something’s in short supply — like Taylor Swift tickets — prices go up. And housing works the same way. Even though we’re seeing more homes hit the market, we’re still way below “normal” levels. That continued low inventory is one of the biggest reasons why prices aren’t tanking.

As Lawrence Yun from NAR puts it: “… if there’s a shortage, prices simply cannot crash.”

What we are seeing: Price growth is slowing down.

As more homes become available, price growth is cooling off a bit — which is a good thing. We’re not seeing prices fall on a national level, but they’re also not skyrocketing like they were in previous years. That’s called price moderation.

And according to Freddie Mac, we should expect that trend to continue through the rest of the year and into 2025. In other words, prices will still go up in most places — just not at a wild pace.

This is especially helpful for buyers who’ve been hit with sticker shock and struggling to compete in a tight market.

So what does this mean for us?

Every market is different, so local insights are key. That’s where we come in — helping people navigate their real estate decisions with clarity and confidence.

Bottom line: experts across the board agree that a market crash isn’t on the horizon. Business Insider summed it up well:

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

So let’s stay informed, stay steady, and continue guiding our clients through this shifting (but still very active) market.

If you want to dive deeper into what’s happening in our local area, let’s chat…give us a call at (626) 914-6637.