Myths vs. Reality: Is the Housing Market About to Crash this 2025?

If you've been watching the news or scrolling through social media, you’ve probably come across some pretty intense headlines:

“The housing market is about to crash.”

“Brace for a repeat of 2008.”

And if you're a homeowner, buyer, or seller in the Houston area — especially around Tomball, Cypress, or Spring — it’s completely fair to ask: Is it true? Should I be worried?

The short answer? No, the housing market is not about to crash. But it is shifting — and understanding that shift can actually give you an advantage.

Where All the Crash Talk Is Coming From

According to a recent survey by Clever Real Estate, 70% of Americans are worried about a housing market crash in 2025. That fear is being fed by TikToks, viral YouTube videos, and doomsday-style headlines.

But just because something is trending doesn’t mean it’s true.

Much of this fear stems from comparisons to 2008 — when a housing bubble burst due to risky lending practices, an oversupply of homes, and millions of buyers in over their heads. Today’s market looks nothing like that.

The Real Story: Why a Crash Is Unlikely

1. There Still Aren’t Enough Homes for Sale

Mark Fleming, Chief Economist at First American, put it simply:

Even though the number of homes for sale has been rising, we’re still well below normal inventory levels, according to Realtor.com data. That shortage is what’s keeping home prices stable, and in many cases, still increasing.

2. Home Prices Aren’t Falling — They’re Moderating

We’re not in a falling market — we’re in a more balanced one. According to Freddie Mac, home prices are still on track to grow in 2025, but at a slower, healthier pace than the wild price surges we saw during the pandemic boom.

Think of it this way:

• Prices went up fast in 2020–2022.

• They’re still going up now — just not as quickly.

• That’s not a crash, it’s stabilisation.

So, What Does This Mean for You?

If You’re a Buyer:

• You’re not buying at the top of an unsustainable bubble.

• Inventory is improving, which means more choices.

• Price growth is slowing, which may help with affordability.

• Waiting for a crash that may never come could mean missing out on opportunities now.

If You’re a Seller:

• You’re likely sitting on substantial home equity.

• Buyers are still active — especially in strong local markets like Northwest Houston.

• The market is competitive but not chaotic, which makes pricing and negotiating smarter.

Every Market Is Local — Including This One

What’s happening nationally is only part of the picture. In Tomball, Cypress, Magnolia, and Northwest Houston, we’re still seeing demand from buyers who want to get settled before rates rise again — and homes that are priced well are moving.

So while price growth may not be double digits like it was two years ago, that’s not a sign of collapse — it’s a sign of normalisation.

Is the Housing Market Crashing or just Shifting?

No, it’s not crashing. Yes, the housing market is shifting.

We’re moving toward a more balanced, sustainable market. Fewer bidding wars. Slower appreciation. More choices for buyers. And for sellers — still strong prices, driven by low inventory and steady demand.

If you’re considering a move, you don’t need to sit on the sidelines out of fear. You just need the right local insight and strategy.

Want to know what the market’s really doing in your neighbourhood?

Let’s chat about your goals and what makes the most sense right now — no hype, just a clear plan.