Housing market crash: expert opinion on 2023.

>There is little debate about how effective the Federal Reserve's inflation-fighting tactics have been in cooling the hot housing market during the pandemic. In February, home prices fell for the first time in 131 months from a year earlier, breaking the longest stall of price gains in 131 months. In May, however, the median home price increased from the previous month for the fourth straight month.

Meanwhile, higher mortgage interest rates, which have doubled since the beginning of''last year, have limited the buying power of those wishing to purchase a home. Instability in the banking sector, headlines about layoffs and growing recession risks are also causing potential homebuyers to slow down.

So does this mean a housing market crash could be on the horizon? Housing experts don't think it's likely.

There is a limited amount of housing for sale.

According to the National Association of Realtors, the average number of offers in the first quarter was 1,630,000 listings at any given time, down 40 percent from the first quarter of 2019, a year before the COVID-19 pandemic began.

The limited supply is due to the fact that 85% of owner-occupied mortgages are contracted at rates below 5%, which