Prices are not likely to crash with the conditions we have in place currently. Prices crashed in 2008 because there was 10 to 15-year-long bipartisan push that "everyone needs to be a homeowner." This let banks write adjustable-rate loans to people who arguably never should have been touching a mortgage given their financial situation. And when interest rates reset, enough people started defaulting that the whole system collapsed. And that's without getting into the funny business of securitizing those bad mortgages and using them as investment vehicles.
These days, mortgages are generally very well-underwritten and only given to people who can afford to pay. High interest rates are going to put a cap on prices, but where we're at now is a supply crunch. 2008 wiped out the homebuilding industry and now there's a supply crunch with not enough houses for the amount of people who want to buy, which is driving up prices.
