If you’ve been hearing talk of a potential housing crash or seeing alarming headlines on social media, you’re not alone. A recent survey from Clever Real Estate shows that 70% of Americans are concerned about a possible market crash in 2025.
But let’s set the record straight: while the market is shifting, it’s not crashing. And this change is actually opening up better opportunities for buyers and sellers alike—especially in South Sound areas like Tacoma, Puyallup, and Auburn.
Why the Market Isn’t Crashing
The primary reason we’re not headed for a crash comes down to basic economics: supply and demand. Simply put, there still aren’t enough homes on the market to meet buyer demand. As Mark Fleming, Chief Economist at First American, puts it:
“There’s just generally not enough supply. There are more people than housing inventory.”
That rings especially true in places like Sumner, SeaTac, and Des Moines, where buyer interest remains steady, but the number of listings is still well below what’s considered a balanced market.
Even with more homes becoming available compared to the past couple of years, we’re still not close to pre-2019 inventory levels. That’s keeping prices steady—or even climbing in some local markets.
As Lawrence Yun from the National Association of Realtors explains:
“...if there’s a shortage, prices simply cannot crash.”
What a Growing Inventory Does Mean
The gradual increase in listings, especially in high-demand neighborhoods like Normandy Park, Lake Tapps, and Bonney Lake, is having a different effect: it’s easing price growth. In other words, homes are still appreciating in value, just at a more manageable pace.
Freddie Mac predicts that this moderation will continue through 2025:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
That’s a win-win for both sides. Buyers will see a less intense market compared to the pandemic years, and sellers can still expect to build equity.
Local Expertise Makes All the Difference
Of course, every housing market is local—and what’s true nationally might look different depending on where you are. Whether you’re considering buying or selling in Burien, Tacoma, Puyallup, or anywhere across Pierce and King County, you’ll want to work with a real estate professional who knows how to navigate this shifting landscape.
To get personalized guidance and stay ahead of the local market trends, explore your options with a local expert through my real estate insights and services.
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