Is a Housing Market Crash Coming? Experts Say: Not So Fast.

If you’ve been scrolling headlines lately, you’ve probably seen talk of a “housing market crash.” But here’s the truth: those headlines aren’t telling the full story. Let’s unpack what’s actually happening—and what over 100 real estate experts project for home prices over the next five years. Spoiler alert: it’s not a crash.

📉 Yes, some local markets are seeing prices level off or dip slightly due to increased inventory. That’s a normal response to more homes coming online. But when you zoom out, the national outlook is far more balanced—and far less dramatic—than the doom-and-gloom stories suggest.

📈 According to the latest Home Price Expectations Survey from Fannie Mae, home values are expected to keep rising, just at a steadier and more sustainable pace through 2029:

• The average projected growth is about 3.3% per year

• Optimistic experts forecast growth closer to 5.0% annually

• Even the most conservative experts still project 1.3% annual growth

Not a single expert group is calling for a nationwide home price decline.

And that’s good news—for homeowners, buyers, and sellers alike.

What This Means for South Bay Buyers and Sellers

While some areas may see prices plateau or soften temporarily, other zip codes—like those in the South Bay—are still experiencing strong demand and limited inventory. That means prices in our local market could outperform the national average.

Even better: low foreclosure rates, solid lending standards, and strong homeowner equity are all helping to support market stability. So if you’ve been waiting for a crash to “get in at the bottom,” you may be waiting a long time.

Bottom Line

If you’re feeling uncertain, clarity is just a conversation away. The market is adjusting—but not collapsing. And understanding what’s happening locally is more important than national headlines.

📍 Want to know what home prices are doing in your zip code?
Let’s have a quick chat and I’ll show you what the data says for your neighborhood—and how to use that information to make smart real estate decisions.