The Housing Market Isn’t Crashing—But It Is Changing

If you’ve been waiting for some big housing market rebound, here’s the deal: The market isn’t crashing, but it’s definitely shifting. And if you’re buying or selling, you need to understand how—because what worked a few years ago won’t necessarily work today.

Two of the biggest names in real estate—Ryan Serhant and Barbara Corcoran—just weighed in on what’s really happening. Let’s break it down so you know what to expect and how to make smart moves no matter where you stand.

It’s Not a Housing Crisis—It’s an Affordability Crisis

Ryan Serhant, CEO of SERHANT., says what we’re dealing with isn’t a housing crisis—it’s an affordability crisis.

“I don’t think there actually is necessarily a housing crisis the way you see and you read about it. I think there’s an affordability crisis.” — Ryan Serhant

Translation: Prices aren’t plummeting, but for a lot of buyers, affording a home has never been harder.

Sure, some areas have more homes hitting the market, but they’re not the budget-friendly ones most buyers need. Case in point: A starter home now costs over $1 million in 237 U.S. cities. That’s wild.

And renters? They’re feeling the squeeze too:

“Over half of all renters are spending more than 30%, sometimes more than 40 or 50% of their paycheck just on their rent.” — Ryan Serhant

That’s money not going into savings or toward future homeownership. So while people want to buy, the biggest hurdle is simply affording it.

Why Sellers Are Staying Put

So if buyers are struggling, why aren’t home prices coming down? Simple—most sellers aren’t in a hurry to sell.

Barbara Corcoran put it bluntly: Even if mortgage rates drop slightly, it’s not going to flood the market with new listings.

“No one wants to move and [there are] fewer houses to choose from at higher rates. So it's difficult for homebuyers.” — Barbara Corcoran

Think about it—if you locked in a 3% mortgage rate in 2020, are you really going to trade that for 7%? Probably not. That’s exactly why inventory is still tight.

And even for those who do list their homes, Corcoran says many sellers aren’t in a rush to lower prices.

“I don't think it's in the nature of sellers to be realistic, honestly. Their house is always worth more… I don't think prices will shake out at all. I think they'll hold out hoping interest rates will go down again.” — Barbara Corcoran

The result? Homes are sitting on the market longer. A Redfin report showed that at the end of 2024, 54.5% of listings had been on the market for over 60 days—a huge shift from the crazy fast sales we saw in previous years.

But that’s not necessarily a bad thing—it’s just a return to a more normal market where buyers actually have time to make decisions instead of scrambling to outbid 15 other offers.

The Bottom Line

So where does that leave you?

• For buyers: Yes, affordability is a challenge. But with fewer bidding wars and homes sitting longer, you have more room to negotiate and less pressure to rush.

• For sellers: Prices aren’t crashing, but buyers are pickier. If you want to sell quickly, price competitively and make sure your home is move-in ready.

• For renters: Rent is high, and it’s likely staying that way. If you’re planning to buy in the next few years, now’s the time to start building your financial game plan.

The market is always changing, but that doesn’t mean opportunities don’t exist. The key is staying informed, being strategic, and working with the right professionals to navigate the shifts.

Because in real estate, the best moves are the ones made on purpose.