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

If you’ve seen dramatic headlines or social media predictions, you’re not alone. According to recent data from Clever Real Estate, 70% of Americans are worried about a housing crash in 2025.

But before you hit pause on your real estate plans, let’s set the record straight:
The market isn’t crashing — it’s correcting. And that shift could actually work in your favor.

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What’s Keeping the Market Stable in 2025?

The main thing holding up the housing market right now is simple:
Inventory is still low.

As Mark Fleming, Chief Economist at First American, puts it:

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

When there’s less of something and demand is strong — like concert tickets — prices hold or go up. And that’s exactly what’s happening with housing. There are still more buyers than available homes, which is keeping prices from falling.

The white line for 2025 shows that while more homes are coming on the market, we’re still below normal inventory levels (shown in gray). That low supply continues to keep a floor under home prices nationwide.

As Lawrence Yun, Chief Economist at the National Association of Realtors, explains:

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

Prices Are Still Rising — Just at a Slower Pace

The good news? More homes are slowly hitting the market. That means prices are no longer rising at a breakneck pace, and we’re starting to see more stable appreciation.

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.”

In simpler terms:
- Prices are still rising, but not as fast as before.
- That’s a win for buyers who’ve felt priced out recently.
- And for sellers, it’s still a strong market — just not overheated.

What Does This Mean for You?

Real estate is always local. While national data shows stability, what’s happening in your neighborhood might look a little different. Some markets are cooling slightly, while others are still competitive.

- Talk to a trusted real estate agent who knows your area to understand what’s really going on in your local market.

Bottom Line

Don’t let fear-based headlines throw you off.
Experts agree: a housing crash is not expected 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.”

So whether you’re buying, selling, or just watching the market, know this:
The sky isn’t falling — the market is shifting. And in many ways, that shift is creating more opportunity, not less.

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