Key Takeaways

Your dream of buying a home may feel out of reach with the current high mortgage rates, but don’t lose hope just yet. Despite the soaring rates, home prices continue to rise due to a lack of housing supply.

Economists are predicting that any market correction will be modest and not on the scale of the Great Recession. Experts do not foresee a housing market crash in the near future, citing low inventory, strict lending standards, and other factors as reasons for stability in the market.

According to the National Association of Realtors (NAR), existing-home prices reached record highs in February 2024, with a median of $384,500. This is a clear indicator of the ongoing rise in home prices, even as mortgage rates hit their highest levels in over two decades.

Despite the challenges of affordability, with home prices outpacing income growth and monthly costs increasing, experts are confident that prices will remain firm and not decline on a national level. Builders have been cautious about ramping up construction, leading to a shortage of homes for sale.

While some markets may see small price declines, the consensus is that a housing market crash is unlikely. With ongoing low inventory, strong demand from buyers, and strict lending standards, the housing market is expected to remain stable for the foreseeable future.

So, if you’ve been holding off on buying a home due to concerns about a market crash, rest assured that experts are optimistic about the outlook for the housing market. Prices may be high, but a steep decline is not on the horizon.