Is the Housing Market About to Crash? Here’s What’s Really Happening

Andrea Baudreau
May 29
3 min read

Updated: Aug 31

Everywhere you turn these days, it seems like someone is predicting a housing market crash. From recession fears to alarming headlines, the noise can feel overwhelming.

But if you’re wondering what’s actually happening in real estate right now — without all the panic — here’s the straightforward truth.

Clearing Up the Confusion

First, it’s important to acknowledge the obvious: Yes, there has been a lot of uncertainty in the economy. Talks of recession, shifting interest rates, and bold predictions have dominated the news cycle.

However, headlines are often designed to grab attention, not necessarily to reflect the full reality. And when it comes to the housing market, the reality is much more stable than the fear suggests.

What Happened in 2024?

The real estate market in 2024 did slow down compared to previous years.There were fewer home sales than usual — and that slower pace left many people wondering if a crash was around the corner.

But slow sales don’t automatically mean disaster.A cooling market after several years of rapid growth is not unusual. In fact, it’s a normal part of a healthy market cycle.

What’s Happening Now in 2025?

In 2025, we’re seeing an important shift: More listings are coming onto the market.

Sellers who held back during the uncertainty of 2024 are now more confident about making a move. As a result, buyers have more options to choose from compared to last year.

However, it’s crucial to understand this:Even with more homes hitting the market, there still aren’t enough to meet overall buyer demand.

What This Means for Home Prices

Because the supply of homes remains relatively low compared to the number of active buyers, home prices are staying strong. Buyers are still actively shopping, and homes are still selling — often within a reasonable timeframe and at healthy price points. We’re not seeing widespread price drops or an increase in distressed sales like we did during the 2008 housing crash. In fact, most areas are experiencing stable or modest price growth as 2025 unfolds. The takeaway? Strong buyer demand is keeping the market resilient.

Why Fear Shouldn’t Drive Your Decision

It’s easy to let fear take over, especially when every news outlet seems to have a different prediction about the future. But the truth is, the best time to buy or sell a home isn’t based on the news. It’s based on your personal goals, timeline, and financial situation. If buying a home now fits your lifestyle, your budget, and your future plans — it’s a good time for you to make that move. If selling now helps you step into your next chapter, then it’s a good time to sell. Market headlines will always come and go. But personal milestones, life transitions, and real needs should be the guiding factors behind your real estate decisions.

The Bottom Line

Despite all the fear-driven talk, the housing market is not crashing.It’s adjusting, it’s evolving, and it’s holding steady thanks to strong demand and limited inventory. Instead of getting caught up in sensational predictions, focus on what matters most: