Is real estate going to crash in 2022? That is a question on many people’s minds, but there’s no need to panic. This article will help you determine whether the housing market is about to crash. In the meantime, you should be aware of the signs of an impending crash. Inflation is at its highest level in several years, so high home prices may be a sign of a housing crash.
While rising mortgage rates may prevent a crash in the housing market in the near future, they may have already begun to rise. The low interest rates of COVID-19 spurred buyers to jump on the opportunity. However, the rising mortgage rates are already causing some concern. According to Fannie Mae, the average 30-year fixed mortgage rate will increase by 3.3% this year. If rates rise, house prices will drop.
The Fed rate hike could trigger big disruptions in the housing market in 2022. With prices rising nearly 20% in a year, this is the fastest growth since the start of the 2008 housing crash, which crashed the entire world economy. Record-low mortgage rates could also cause a housing crash, and this is what investors should prepare for. There is no clear reason to panic, but there is no reason to avoid the housing market.
The lack of affordability is another cause of a cooling down in the housing market. As prices rise, buyers lose interest. With fewer homes on the market, homebuyers will stop looking. But, the stock market will still be historically impressive, with home prices rising at an average rate of 17% per year. So, the crash is not yet in sight. So, the question is: “Is real estate going to crash in 2022?”