Mindful of the old saying that the only things you can predict are death and taxes, we’re going to try our luck and try and predict what will happen with the housing market over the coming year.
With inflation and interest rates rising and conflict in Ukraine, there is a lot of uncertainty around, so take this post lightly and don’t bet the farm on anything we’re suggesting!
We don’t believe the housing market activity will reach historic highs, but economists expect it to remain buoyant.
This article will explore 2022’s most talked-about housing market predictions. Considering the opinions of real estate experts, here are some predictions regarding the future of the US housing market.activity will reach historic highs, but economists expect it to remain buoyant.
There will be no crash, and there is a very high probability that housing market conditions will remain robust through 2022. Many trends that elevated real estate to historic heights last year are likely to continue.
A low-interest-rate environment makes housing more affordable, pushing home prices higher as more buyers compete for the same limited supply.
Real estate investors also benefit from low-interest rates; more investors purchase houses intending to rent, reducing the available housing stock.
The two buyer types, homeowners and investors, compete over ever-reducing housing stocks, pushing up prices.
However, the growth rates of average prices during 2020 and 2021 were way above the average growth rate of 5.3%.