With interest rates up, sales slowing, and more homes hitting the market, many homeowners are asking the same question: Is a housing crash coming in 2025? While headlines may sound alarming, the reality—especially here in Pierce County—is more stable than you might think. At Onsite Real Estate Group, we track local trends closely to help our clients make confident decisions. Here’s what the data is saying about the current market, and why we don’t expect a crash anytime soon.
A true market crash means steep price drops, widespread foreclosures, and sudden loss of equity. Think 2008-style collapse. Right now, that’s not what we’re seeing in Washington—or nationally. Most economists agree that today’s housing market is facing a correction, not a crash. Prices may cool off, but the fundamentals remain strong.
As of spring 2025, home values in Washington are up roughly 2% year-over-year, with Pierce County seeing stable pricing in most submarkets. While bidding wars have slowed and price reductions are more common, the data doesn’t show widespread devaluation. Most sellers are still walking away with equity—and properly priced homes are selling.
A crash typically requires a massive oversupply of homes, but that’s not the case here. Pierce County inventory has increased 11–20%, depending on the area, but it’s still well below pre-2020 levels. More options for buyers means longer market times—not price collapse.
One reason the 2008 crash was so severe? Risky loans and lax underwriting. Today’s buyers face far stricter lending standards, meaning fewer defaults and foreclosures. As a result, the market is more resilient—even as interest rates have climbed.
Even with higher rates, Pierce County continues to attract buyers thanks to its proximity to job centers, military bases, and recreational amenities. Many would-be buyers have adjusted their budgets, but demand has not disappeared. This steady activity supports home values, even if appreciation has slowed.
We’re in a more balanced market—not a bursting bubble. For sellers, this means pricing matters more, staging makes a difference, and strategy is key. At Onsite Real Estate Group, we help you navigate these shifts with clarity, so you can sell smart—no matter the headlines.
