Headlines warning of a housing market crash may grab attention, but they don’t tell the full story. Here’s what’s actually happening—and what experts project for home prices over the next five years.
In some markets, prices are leveling off or dipping slightly as more homes hit the market. That’s a normal reaction to rising inventory. But the big-picture outlook is far less dramatic than the headlines suggest.
According to the latest Home Price Expectations Survey (HPES) from Fannie Mae, over 100 housing market experts agree: home prices are expected to keep rising through 2029, just at a slower, more sustainable pace than recent years.
The graph below shows how home prices are expected to rise year by year through 2029. When you look at expert responses, the average forecast is about 3.3% annual growth. The more optimistic expect closer to 5.0% per year, while even the most pessimistic still project around 1.3% annual growth.
While the exact numbers vary, here’s the key takeaway: not one expert group expects a national price drop or crash. Instead, they predict steady, long-term appreciation—much healthier for the market overall.
Yes, in the short term, some areas may remain flat or see small declines, especially where inventory has jumped. Others may continue to appreciate faster than average, depending on local supply and demand. But gone are the sharp price spikes of recent years. The market is cooling—but not collapsing.
Even the most cautious experts believe prices will climb over the next five years. That confidence comes from solid fundamentals: low foreclosure rates, responsible lending, and near-record homeowner equity—all of which help protect against widespread forced sales or price drops. If you’ve been holding out for a crash before you buy, you might be waiting a long time.
Bottom Line: The housing market isn’t crashing—it’s normalizing. If you’re unsure how that affects your plans, now’s a great time to get clarity. Want to understand what this means for your neighborhood? National trends matter, but local data is what truly counts. Connect with a Town & Country Realty Broker today. Call us at 541-757-1781 in Corvallis or at 541-924-5616 in Albany. We’re here to help you make confident decisions.
Source: Keeping Current Matters. Disclaimer: The information contained, and the opinions expressed, are not intended to be construed as investment advice. Town & Country Realty does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Town & Country Realty will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.