The Housing Market Isn’t Crashing—It’s Changing

If you’ve been holding out for a major housing market rebound—or bracing for a crash—two of the most recognizable voices in real estate have a message for you: the market isn’t collapsing, but it is changing.

Ryan Serhant and Barbara Corcoran agree on one key point: today’s housing market looks very different than it did just a few years ago. And while that shift has created challenges, it’s also opened the door to new opportunities—if you know what to look for.

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

Ryan Serhant, CEO of SERHANT., has been clear in his assessment of the current market.

“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.”

In other words, home prices aren’t collapsing—but for many buyers, affording a home has become increasingly difficult.

Inventory may be growing in some areas, but much of it isn’t entry-level or budget-friendly. In fact, starter homes now exceed $1 million in hundreds of U.S. cities—a reality that feels especially relevant in high-cost regions like Northern Virginia.

Renters aren’t immune either.

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

When so much income goes toward housing, it becomes harder to save, invest, or plan for future homeownership—keeping many people stuck in place.

Why Sellers Aren’t Rushing to List

If affordability is such a challenge, why aren’t home prices coming down?

Barbara Corcoran points to a simple reason: most sellers don’t need to sell.

Homeowners who locked in ultra-low mortgage rates years ago are reluctant to give them up.

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

Even when mortgage rates soften slightly, Corcoran doesn’t expect a flood of new listings.

“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.”

The result? Homes staying on the market longer.

According to Redfin, more than half of listings toward the end of 2024 had been on the market for over 60 days—a noticeable change from the rapid-fire market of recent years.

But that isn’t necessarily bad news.

Longer days on market signal a shift toward balance, giving buyers more breathing room and reducing the pressure of instant bidding wars.

What This Market Shift Means for You

For Buyers
Affordability remains a hurdle, but competition has eased. Homes are sitting longer, negotiations are back on the table, and buyers have more time to make informed decisions.

For Sellers
Prices aren’t crashing—but buyers are more selective. Homes that are priced correctly and presented well are the ones getting attention. Overpricing can lead to extended time on market and price reductions.

For Renters
High rents continue to strain budgets, but if buying is part of your long-term plan, now is the time to focus on credit, savings, and strategy so you’re ready when the right opportunity appears.

Bottom Line

The housing market isn’t broken—it’s evolving.

Affordability challenges, slower pace, and changing buyer behavior mean success today looks different than it did a few years ago. Whether you’re buying, selling, or planning your next move, the key is staying informed, being realistic, and making decisions based on your personal goals—not headlines.

 

Opportunities still exist in every market. Finding them simply requires the right perspective—and the right guidance.