Will High Interest Rates Cause Another Market Crash?

Stricter bank lending practices lower the chances of foreclosure and keep today’s housing market steady.

Is the real estate market going to crash? This is a question I get often, and it’s understandable. With rising interest rates and economic uncertainty, many are asking if the housing market will collapse like it did in 2008. So, to ease everyone’s worries, let’s break down what’s happening in a clear and straightforward way.

Back in 2008, the market fell apart because too many people were approved for loans they couldn’t afford to pay. Lending standards were loose, and banks were giving out mortgages without properly verifying income or financial stability. As a result, many homeowners defaulted, which led to a wave of foreclosures. 

Try to imagine real estate as a big playground where there were too many kids on the seesaw, and it couldn’t handle the weight and broke. Similarly, as banks gave out loans to people who couldn’t afford to pay them back, many homeowners lost their properties. This ultimately triggered the 2008 market crash.

“Property prices may go up and down like a roller coaster, but another crash like 2008 is unlikely.”

But today’s housing market is very different because banks have implemented stricter loan requirements. Most people who buy homes today have gone through thorough financial checks and can realistically afford their monthly payments. That makes a huge difference in keeping the market stable.

Another key factor is supply and demand. Right now, there aren’t enough homes available for everyone who wants to buy. This limited supply keeps demand high. So, while property prices might go up and down like a roller coaster, another crash like 2008 is unlikely to happen.

If you’re thinking about buying or selling, don’t put it off out of fear. The best step you can take is to speak with someone who understands the market and can guide you through it.

Whether you need advice or have questions, feel free to reach out. You can send a message to or call anytime.  I’m here to help you make the smartest move for yourself and your family.