Will the Real Estate Market Crash in 2025?

By DeVonna Meyer

DeVonna has spent over 43 years building lifelong relationships in South County and has sold hundreds of homes from San Jose, Morgan Hill, Gilroy, and Hollister Cities.

Are you worried the housing market is about to crash? You’re not alone. A recent survey shows that 70% of Americans are bracing for a crash in 2025. But here’s the truth: despite all the headlines and fear, the market isn’t crashing. It’s correcting. And that’s precisely what it’s supposed to do. Let’s take a closer look at what’s going on.

Why the market isn’t crashing? The media loves dramatic headlines. “Crash coming” gets attention, but it doesn’t tell the whole story. According to First American’s chief economist Mark Fleming, we still don’t have enough homes to meet demand. Yes, inventory is increasing, but not quickly enough to trigger a crash. That’s why prices aren’t falling. Many experts expect prices to continue rising, albeit at a slower pace than during the pandemic.

What does this mean if you’re buying? If you’ve been waiting for the right time, this could be it. There are more homes on the market, more room to negotiate, and less pressure to make quick decisions. This is a more balanced environment, which gives you time to shop smart and make an informed choice.

What does this mean if you’re selling? The market is still in your favor, but you need the right strategy to capitalize on it. You can’t just list your home at any price and expect multiple offers. Smart pricing, strong marketing, and a clear plan are key if you want to attract serious buyers and sell on your terms.

Buying or selling a home is a significant financial decision. Relying on fear-based headlines can lead to missed chances or costly moves. What you need is local market data, a solid game plan, and an experienced agent who knows what’s happening.

If you’re considering a move and would like honest guidance, feel free to call or text me at 408-547-4362 or email me at devonna.meyer@exprealty.com. With 19 years of experience and hundreds of closed transactions, I can help you navigate today’s market with confidence.