Will the Real Estate Market Crash? This question comes up so often now. With the federal government raising interest rates, people are asking this question more and more. So, will the housing market crash in 2022? I think no, and here is why.
But why have home prices not dropped? Why are they still going up?
It’s as simple as supply and demand… Of course, there are many factors that go into this, but this is where we are in the housing market today.
Remember that whole supply chain issue that we had? The lumber shortage, etc… Do you know who was heavily impacted by that?
Builders! Yes, that’s right, builders. With so many housing projects put on hold, it’s slowed down how many new homes are hitting the market. To top that off, we are still seeing less homes being listed for sale.
We are still living with a housing shortage. Demand for houses are still high while inventory is still extremely low.
Will we see a crash or a correction? Probably… Is it anytime soon? Probably not…
Pay attention to what economists are saying. Follow the experts, watch the trends, and keep yourself aware. Sign up for different newsletters like Morning Brew and continue to keep learning and growing with an ever changing (but generally the same) economy.
