How many Americans think US housing market is heading for ‘crash’

A significant portion of Americans fear the once-booming housing market is headed for a significant crash in the months ahead, recent survey results from LendingTree showed.

According to the survey, 41% of Americans expect the housing market to crash within the next 12 months. By comparison, just 25% of respondents said they expect the sector to avoid a crash, while 34% said they weren’t sure.

Of those who expect a crash, a whopping 74% believe it’ll be as bad or worse than the housing market’s implosion in 2008 during the Great Recession.

Some 33% of respondents said inflation was the most significant reason for a predicted crash, while 24% pointed to higher interest rates and 16% called out a lack of affordable housing.

Conditions within the housing sector have deteriorated this year as surging mortgage rates crush buyer demand and force sellers to lower their listing prices. Mortgage rates have declined in recent weeks but are still hovering at an average of 6.49% — more than twice as high as they were in January.

Despite mounting fears among consumers, the housing market is more stable than it was ahead of the Great Recession, according to LendingTree senior economist Jacob Channel.

“Today’s homeowners are in a much better position to continue to make their payments, even if we enter a recession,” Channel said. “It’s important to note that the reason why the market crashed in 2008 was because there was diminished demand for homebuying and a massive influx of homes hitting the market due to high foreclosure rates.

“Right now, we do have reduced demand for new homes, but no massive influx of supply, which puts us in a much better position,” Channel added.

Still, Channel noted that home price declines of 5% to 10% “seem reasonable to me” in many markets across the country.

“While I do think the housing market will continue to slow over the next 12 months and some people may end up underwater on their mortgages as a result, a major crash doesn’t appear likely — at least not at the moment,” Channel said.

Some experts say the decline in home prices will be more extreme, potentially dipping 20% from recent peaks in the months and years to come.

Millennials were most likely to predict a looming housing market crash – with 44% of respondents in that age bracket stating they think a meltdown is imminent. Baby boomers were least concerned, with 35% predicting a crash.

Economic fears aren’t limited to homeowners. A 61% share of renters said their monthly rent payments were more expensive than they have been or should be, based on their experience.

Rising shelter costs are a key driver for inflation, which moderated slightly in October but is still running well above the Federal Reserve’s acceptable range. An update on inflation for November is due next week.

As The Post reported this week, US listings of homes for sale were pulled off the market at a record clip in November. Experts at Redfin attributed the trend to surprise among homeowners who were receiving less interest and lower bids than they expected from cost-conscious buyers.