Is the Housing Market Going to Crash? Not on Long Island, Brooklyn, or Queens.

If you’ve been scrolling through social media or catching the headlines lately, you’ve probably seen a lot of chatter about a potential housing market crash. You're not alone—according to Clever Real Estate, 70% of Americans are concerned about a crash in 2025.

But before you put your plans to buy or sell on hold, let’s take a step back and look at what’s really happening—especially here in Long Island, Brooklyn, and Queens.

No, the Market Isn’t Crashing—It’s Correcting

Despite the dramatic headlines, we’re not heading toward a housing crash. We’re experiencing a market shift—and in many ways, that’s a good thing for both buyers and sellers.

The reason? Inventory. Or rather, the lack of it.

As Mark Fleming, Chief Economist at First American, puts it:

“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”

That’s especially true in our local markets. In Nassau, Suffolk, and the boroughs, demand continues to outpace supply—especially in neighborhoods with top-ranked school districts, easy commutes, or vibrant community life. That imbalance has kept home prices strong and competition high, even as mortgage rates have fluctuated.

More Listings = A More Balanced Market

Here’s where the shift comes in: While we’re still in a seller’s market, we’re starting to see a modest increase in listings—especially in Queens and pockets of Brooklyn. On Long Island, some homeowners are finally deciding to move after holding off for the past couple of years.

That rise in inventory is healthy. It means buyers have more options, and it’s helping to slow down the rapid price increases we’ve seen in recent years.

According to Freddie Mac:

“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”

Translation? Home values are still going up, just not as fast. That’s a win-win: sellers still gain equity, and buyers get a slightly less intense experience.

What This Means for Long Island, Brooklyn, and Queens

• On Long Island, low inventory is still the name of the game—especially for move-in-ready homes in desirable school districts. Prices are holding steady, and well-priced homes are still getting multiple offers.

• In Brooklyn, the market varies block by block. Some areas are seeing a surge in new inventory (think: condos and townhomes), while others remain tight.

• In Queens, more sellers are entering the market, especially in neighborhoods like Forest Hills, Bayside, and Jamaica—but buyer demand remains strong, keeping prices competitive.

If you're a buyer, this could be your chance to find a home with less bidding war drama. And if you’re a seller, your equity is likely still in great shape—but pricing and presentation matter more than ever.

Bottom Line

Don’t let fear hold you back. While national headlines may sound alarming, local experts and economists agree: we’re not headed for a crash—just a healthier, more balanced market.

If you’re thinking about buying, selling, or just curious about what your home is worth in today’s market, let’s talk. I’ll break down what’s really happening in your neighborhood and help you navigate your next move with confidence.



Source:  Keeping Current Matters, Do You Think the Housing Market’s About To Crash? Read This First, April 16, 2025