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The housing market is not going to crash, however there is a group of homebuyers we need to keep an eye on. The five reasons I do not believe the market will crash:

1. This is not the 2008 housing crisis.
2. 42% of homeowners do not have a mortgage.
3. 62% of homeowners that do have a mortgage, have a 4% interest rate or lower.
4. Institutional investors are buying up starter homes in the 300K 500k range. These are typically the most sought after homes for first time home buyers, Millennials, Gen Z and Boomers who are looking to downsize.
5. Qualified buyers. Many folks who purchased a home in the past few years have high incomes and low debts.

The group we need to watch are the those folks who over extended themselves the past few years. I hope the economy turns around and people can alleviate some of this financial pressure.

Are there any other scenarios you think could create a potential crash in the market?