Key Takeaways: Experts Predict No Housing Market Crash Despite High Mortgage Rates

The housing market continues to defy expectations as home prices soar despite high mortgage rates. Experts are weighing in on the possibility of a housing market crash, with many predicting that any correction will be modest and not on the scale of the Great Recession.

According to the National Association of Realtors (NAR), median existing-home prices have been on the rise for the past 10 months, with April 2024 seeing a 5.7 percent increase over the previous year. The lack of housing supply is cited as a major factor driving the continuous price hikes, with inventories remaining tight and demand remaining strong.

Economists and analysts agree that a housing market crash is unlikely due to several key factors. Strict lending standards, low inventory, and strong demand from buyers are all contributing to the stability of the market. Additionally, builders have been cautious about overbuilding, leading to a shortage of homes for sale.

While some markets may see small declines in prices, experts do not expect a widespread crash. The consensus is that the current housing boom is unlikely to end in a bust, with factors such as strong buyer demand, demographic trends, and muted foreclosure activity supporting the market’s stability.

Overall, the outlook for the housing market remains positive, with experts pointing to low inventory, lack of new construction, strict lending standards, new buyers, and fewer foreclosures as reasons why a crash is not imminent. If you’re considering buying a home in 2024, experts suggest that prices are unlikely to drop significantly, and affordability may continue to be a challenge due to high mortgage rates.