Is the Housing Market About to Crash? Here’s the Truth
There’s a lot of noise circulating about the housing market right now. If your friends or clients are saying things like “I think prices are about to crash,” you’re not alone. That fear is spreading—but it’s not based on the actual data.
Here’s the truth:
Home prices aren’t crashing. They’re moderating.
And that’s a key difference.
A recent survey showed that 70 percent of Americans believe a housing crash is coming in 2025. That kind of belief creates hesitation. People hold off on buying or selling out of fear. But when we look at the numbers, the story is much more grounded.
Inventory has gone up compared to last year, which is good news for buyers who’ve been waiting for more options. But—and this is important—we are still about 20 percent below pre-pandemic inventory levels. In real estate, low inventory means one thing:
Prices can’t crash when supply is limited.
That’s just basic economics.
Lawrence Yun, Chief Economist at the National Association of Realtors, said it best:
“There is just not enough supply. Prices simply cannot crash.”
Even Freddie Mac expects home prices to keep climbing this year, though at a slower pace. And that’s actually a positive sign. Steady, sustainable growth builds long-term confidence and keeps the market healthy.
So if you hear someone say they’re waiting for a crash before making a move, here’s what you can share with them:
Inventory is still too low for a major drop in prices
Home values are rising at a more manageable, stable pace
Now is still a smart time to buy or sell—especially for those thinking long term
Bottom line?
Fear-based decisions rarely win in real estate. Clarity, data, and long-term vision always come out on top.
