The Real Estate Market Has Declined in the Past Without It Collapsing

Real estate prices had gone up almost 34% since the first quarter of 2020 after a decade of unprecedented housing appreciation. Some people who claim that another 2008-like crash is around the corner like to point out that housing affordability is as bad as it's been since the years leading up to the 2008 crash. We are undoubtedly reaching the limits of affordability for Americans to buy a home, especially with rising interest rates. This by itself should cool the real estate market off and could cause a correction. But everything else, from lending standards to economy-wide inflation make a 2008-like collapse highly unlikely.