Worried the Housing Market’s About To Crash? Here’s What You Need To Know – Especially in Sarasota, Lakewood Ranch, and Venice

Do You Think the Housing Market’s About To Crash? Read This First

If you’ve been watching the news or scrolling through social media lately, you’ve probably seen headlines warning of a looming housing market crash. It’s enough to make anyone nervous—especially if you’re thinking about buying or selling a home in Southwest Florida.

According to recent data from Clever Real Estate, 70% of Americans are worried about a housing crash in 2025. But let’s hit pause on the panic.

The reality? The housing market isn’t crashing. It’s shifting—and in a way that can actually benefit buyers and sellers in our local areas like Sarasota, Lakewood Ranch, and Venice.

Inventory Levels Are Still Low

Mark Fleming, Chief Economist at First American, sums it up clearly:

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

Even though we’ve seen an increase in listings in 2025, inventory is still far below what we’d call “normal.” And here in Southwest Florida, the appeal of Gulf Coast living continues to keep demand high—from retirees to remote workers to growing families. (shown in gray):

Low inventory means we’re not in a bubble. It also means that home prices are being supported, not dragged down. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), explains:

“… if there’s a shortage, prices simply cannot crash.”

A More Balanced Market Is Emerging

The good news? More homes are coming on the market, helping to ease the pressure that’s been driving prices up at a rapid pace.

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.”

This means we’re moving toward a healthier and more balanced market. Prices are still rising—but not as quickly. For buyers, that’s a welcome change. And for sellers, home values are holding strong, making this a strategic time to list. (see graph below):

What This Means for Sarasota, Lakewood Ranch, and Venice

Real estate is always local. And here in our region, the fundamentals are solid:

• Sarasota continues to be a top destination for lifestyle buyers and retirees.

• Lakewood Ranch remains one of the fastest-growing master-planned communities in the nation.

• Venice attracts buyers with its charm, affordability, and coastal access.

These factors create long-term stability in home values—and make a crash even less likely here than in other parts of the country.

Bottom Line

Don’t let fear-based headlines steer your decisions. Economists and housing experts agree: a market crash is not expected in 2025. What we’re seeing is a shift toward slower, steadier price growth and more opportunities for buyers and sellers alike.

If you’ve been waiting for the right time to make a move in Sarasota, Lakewood Ranch, or Venice, now is the time to stay informed and strategic.

Let’s chat about what’s happening in your neighborhood—and how you can make the most of the current market.