Will the Real Estate Market Crash? The Question on Everyone's Mind...

It’s a question every potential buyer, seller, and homeowner has asked at least once over the past few years: Will the real estate market crash?

After a whirlwind of price hikes, interest rate increases, and limited inventory, many people are wondering whether we’re on the verge of a bubble burst. Let’s take a closer look at what’s really going on—and what experts are predicting.

A “Crash” Isn’t What It Used to Be

When people think of a real estate crash, they often picture the 2008 housing crisis. That collapse was triggered by loose lending practices, inflated home values, and massive foreclosures. Today’s market looks very different.

Lenders are stricter, buyers are more qualified, and the demand for housing continues to outpace supply in many areas.

According to Forbes, many economists believe the market is cooling—not crashing. Check out their take here:
https://www.forbes.com/advisor/mortgages/housing-market-predictions/

Supply and Demand Still Rule

One major factor protecting the market is low housing inventory. Simply put, there aren’t enough homes to meet buyer demand, especially in suburban and metro areas where people are looking to relocate.

This limited supply continues to push prices upward, even if more gradually than before. As long as demand outpaces supply, a dramatic crash is unlikely.

Interest Rates Are a Wild Card

Mortgage rates have risen significantly since 2022, which has cooled buying activity and shifted the market in some places. But even with higher rates, many markets remain competitive—especially for desirable homes in good school districts.

Higher interest rates may cause price adjustments, but a full-on crash? Not likely.

What Experts Are Watching

Economists and real estate professionals are keeping an eye on a few key indicators:

• Inventory levels: Are more homes hitting the market?

• Buyer activity: Are buyers still putting in offers?

• Foreclosure rates: Are homeowners able to keep up with payments?

So far, none of these signs point toward a crash.

Curious how this applies to your area? Realtor.com breaks it down by region:
https://www.realtor.com/research/housing-market-predictions/

What It Means for Buyers and Sellers

If you're waiting for the market to crash before buying, you might be waiting a long time. While we may see corrections in pricing, the current housing landscape doesn’t show signs of a free fall.

For sellers, this means now is still a good time to list—especially if you’ve owned your home for a few years and gained equity.

Forti Homes Can Help You Navigate the Market

No matter what the headlines say, real estate is hyper-local. At Forti Homes, we know the neighborhoods, the trends, and how to guide you in this market—whether you're buying your first home or selling your forever one.

Have questions about the market or what’s next? Reach out to our team and let’s chat.