Will The Housing Market Crash In 2022?

Описание: Will the housing market crash in 2022?
There are many factors that have people concerned about this possibility, including inflated prices and rising interest rates – Let’s take a look at what is going on in the U.S today. We all know that home prices are high right now, but did you also realize just how far they’ve gone in recent years? The housing market was crazy during the 2022 pandemic. The combination of low-interest rates and limited availability in desired areas caused people to bid up prices for homes, leading to overall increases by 11% in 2020 and depending on what area 16-20% in 2021! Wowzers!

The Federal Reserve reports an average annual growth rate for house values over the last 27 years at 4%. The Fannie Mae Foundation predicts that home prices will rise by just 7.9% in 2022. While that seems better and looks like (I I SAY THIS IN ALL CAPS) SLIGHTLY heading back to a neutral market, it's still nearly double the average historical rate.

Where does this leave us for the 2022 housing market? The housing market is expected to struggle with a shortage of available homes for many months, BUT.... the price growth
The housing market has seen is a huge jump in demand.
There are many reasons why more people than ever before want to buy homes including affordability for mortgages as well a large number of buyers looking at their first property purchase have come on, also As a result of the pandemic, many families have spent time at home and work from there. This has caused them to change how they live including needing more space for an office as well as growing families and are able to live further out from the city because commuting to work is not one of their deciding factors. All of this has caused the demand for housing to increase.

should moderate as time goes on and more inventory enters into play.

The mortgage rate is already on the rise, but it's expected to remain historically low. Compared with 2021 this will create more opportunities and negotiating power for buyers in coming years as many experts are predicting.
Home prices continue to rise, and many people are concerned that the crash of 2008 could happen again.
"The 2008 housing market crash was driven in large part by people overleveraging their mortgages and defaulting on payments. This time around, the demand for homes outweighs supply--a different scenario altogether." As you can see, the demand there was a large demand for homes but at the same time, there was a very large supply of them too. much higher in 2021 than 2008. The demand in 2008 did not change but the number of people that could afford the homes did, leaving these thousands of new homes with no one to buy them caused the value of the homes to dramatically decrease. History shows us that the real estate market has shifted between a buyers market, sellers market and what we like to see a neutral market and so the experts are mostly all aligned in saying we will continue to see a housing shortage this year, but we are also seeing more homes come on to the market and pushing out some buyers because of the internet rates moving back up. I hope you enjoyed this video, like I always say I have people that call me everyday and love when they do so please call me any time with questions.
I'm Amy Thanks for watching!

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