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The housing market is hot with properties going for MORE than the asking price across the country- but are things about to cool down?
Many people have their housing market predictions for the remainder of 2022.
The housing market has become quite unpredictable. When the world was in lockdown, most would guess that the housing market would take a beating, and housing prices would tank.
Instead, housing prices skyrocketed. In the United States, the housing stock rose by $2.5 trillion.
Thanks to the unpredictability of the housing market, people aren’t sure of whether to buy, sell, build or rent a home and are doing their research to try and figure out their next steps.
My Thoughts: Most people looking at purchasing a home are concerned about the housing market and if it is the right time to make such a significant investment.
Google Trends is showing a massive increase in the number of times people search for “When is the housing market going to crash” as people show concern about whether not it is a wise time to invest in a home.
Many buyers fear that the current housing boom will have the same outcome as the last housing boom before the great recession of 2008. This fear can be heightened as the world is still trying to claw its way out of a health pandemic. Furthermore, many first-time homebuyers are in a panic as they don’t want to buy a home during a time of inflation when they don’t have a home to sell.
Buying real estate has become more expensive as well as highly competitive. For example, in some of the most popular states to live in the United States (such as Colorado and California), over half of the homes are sold for more than the asking price.
To live in sought-after states such as Colorado or California is to live in luxury. For example, buying an average home will cost you between $700,000-$800,000 if you want to live in California.
As the trend of buying a home for more than the asking price continues to grow, some wonder if it is the perfect time to invest in real estate or the worst time.
Because it is a seller’s market, many consider building a new home instead of looking for homes that are for sale. However, the growing price of building materials such as lumber and rising labor costs also is causing an increase in the cost of building a new home.
My Thoughts: If you are considering purchasing a previously owned home or building a home, it may be hard to make such a huge life decision as the market is more confusing (and competitive) than ever.
It is hard to determine the answer to that question. The housing market (like the stock market) is very unpredictable. There are many layers and variables to the housing market.
The answers vary depending on who you ask.
“We’re seeing lots of factors at play right now,” Todd Walker, President of Minneapolis Area REALTORS® shared in a recent statement. “Buyers are running up against the inventory shortage even as they’re inspired by 50-year low mortgage rates. We’re seeing shifting attitudes around urban living and condos. People are also very encouraged by the progress on the vaccination front.”
Experts Predict This For The Housing Market In 2022
Experts make various predictions for the housing market in 2022:
Some experts have stated that the market will only continue to rise.
Some experts hypothesize that the housing market will remain stable for a while, yet others think that there will be some cooldown on the growth rate.
However, many experts don’t see there being a huge dip in the housing market. So even if the market cools, it won’t cool to the point where it creates an economic crisis.
My Thoughts: There isn’t a clear consensus about where the market is going.
Because there are so many different housing market predictions for 2022, it’s hard to say exactly where the housing market is going. However, based on the predictions of many experts, I would say that it won’t crash in 2022.
While this might not be the clarity that my readers are looking for, one cannot simply give a straight answer when there is none. However, most experts agree that buying a home right now is a pretty stable investment as even if prices drop slightly in some real estate markets, they will likely not fall to the point where it creates an economic crisis.
Experts are not 100% as to where the real estate market is going. So, if you are looking into purchasing a home, please consider the pros and cons before making an educated and thought-out decision.