Lately, it seems like everyone’s been asking the same thing: “Are we headed for a housing market crash?”

If you’ve spent any time on social media or tuned into the news lately, you’ve probably seen some pretty alarming headlines. So it’s really no shock that a recent survey from Clever Real Estate found that 70% of Americans are worried about a housing crash in 2025.

But before you put your home plans on hold, take a deep breath. The truth is, the housing market isn’t crashing — it’s just going through a shift. And the good news? That shift could actually work in your favor.

Today’s Inventory Keeps the Housing Market from Crashing

Mark Fleming, the Chief Economist over at First American, puts it like this:

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

Think about it this way — when there’s a shortage of something, like tickets to a sold-out concert, the price goes up, right? That’s exactly what’s been happening with homes. There just aren’t enough houses to go around, and with so many buyers still out there, that demand keeps pushing prices up.

Take a look at the white line for 2025 in the graph below. Sure, the number of homes for sale is going up, but according to data from Realtor.com, we’re still way below what's considered normal — that’s the gray area on the chart.

That ongoing low supply is exactly why home prices aren’t dropping across the country. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it:

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

More Homes for Sale Means Price Growth Is Easing

And as more homes start to hit the market, it helps ease some of that intense pressure that’s been driving prices up — which means we’ll likely see more steady, healthy price growth.

So, even though prices aren’t dropping across the country, the increase in available homes means they’re not skyrocketing like they were either. What we’re seeing now is a bit of a price cooldown — or what’s called price moderation (check out the graph below):

And according to Freddie Mac, that trend of moderation is expected to keep going for the rest of the year:

“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 simple terms, it means prices will still go up in most areas, but at a slower pace. And that’s great news for anyone who’s been struggling to find a home or dealing with the sticker shock from the fast price hikes over the past few years.

But of course, what's happening with prices and inventory can vary a lot depending on where you are. So, it’s a good idea to chat with your agent to get the scoop on what’s going on in your local market.