Real estate will crash when these two things happen in parallel: The cost of borrowing (interest rates) rise beyond what the majority of those with mortgages can afford on a monthly basis, plus the demand for properties from buyers and/or renters falls well below the number of sellers who must sell.   If the cost of borrowing rises but there is demand, then sellers can sell or rent their unit at a regular market value, with no crash.    If the demand to buy or rent drops but sellers can afford their borrowing costs, then they do not have to sell and property values will remain the same, with no crash. | Most Searched Real Estate Questions