US Housing Market Bubble Likely to Continue: No Signs of a Housing Market Crash

Over the last few weeks, we’ve watched nearly every market go into freefall — the stock market, cryptocurrencies, and precious metals.

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So far, one seems untouched: Housing. Investors may have reduced investments because of concerns about the long-talked-about housing market crash.

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However, many think prices could continue to rise at impressive rates — here’s why.

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The US Housing Market Right Now

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At the start of 2022, the federal funds rate was close to 0%, and many buyers secured mortgage rates between 2% and 3%. But the fed rate rose to 0.33% in March 2022 and then again to 0.83% in May. As a result, mortgage rates are now hovering around the 5% mark.

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It seems reasonable to expect demand for housing to drop in this kind of environment, leading to a fall in prices.

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TIM THOMAS

Analyst Predictions

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US Housing Market Bubble Likely to Continue: No Signs of a Housing Market Crash

Over the last few weeks, we’ve watched nearly every market go into freefall — the stock market, cryptocurrencies, and precious metals.

So far, one seems untouched: Housing. Investors may have reduced investments because of concerns about the long-talked-about housing market crash.

However, many think prices could continue to rise at impressive rates — here’s why.

The US Housing Market Right Now

At first glance, it seems like the economic conditions first-time buyers have waited for could finally be here. Interest rates are rising, meaning it’s more expensive to buy a house now than in previous months.

At the start of 2022, the federal funds rate was close to 0%, and many buyers secured mortgage rates between 2% and 3%. But the fed rate rose to 0.33% in March 2022 and then again to 0.83% in May. As a result, mortgage rates are now hovering around the 5% mark.

It seems reasonable to expect demand for housing to drop in this kind of environment, leading to a fall in prices.

TIM THOMAS

TIM THOMAS

HOUSING MARKET TRENDS

Investing in Real Estate or Buying a New Home?

Learn About Emerging Trends In: Mortgage rates Buyer demand Home values Real estate investor trends

Analyst Predictions

In February, a poll of 33 property analysts found that these experts predicted US house prices would rise by 10.3% in 2022. The prediction was even higher than the same poll from September when the same group estimated prices would rise by 8% this year.

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