Housing Market 2022: Will It Crash or Boom?
Housing Market Predictions for 2022
The housing market in 2021 started to explode like fireworks, and many experts believe it will continue happening in the following year. The recovery is still ongoing, and there’s a low inventory of houses for sale.
Buyer Demand for Housing Will Remain Strong, housing market forecast 2022
Despite the strong demand, homes are still receiving less offers than they sold in September 2020. This is a great sign for both buyers and sellers.
Housing Inventory Will Still Be Low (Mostly)
The number of homes actively listed has decreased by about 22% in 2018. This is because the majority of markets are seeing slow seller traffic.
How Fast Will Homes Fly off the Market in 2022?
In September 2020, homes were on the market for over 21 days, and this trend is expected to continue in 2022 with more homes being snatched up.
This is great news for home buyers, who are eager to get their hands on a home. However, there are some things that buyers need to keep in mind before they make a final decision.
Will There Be a Lot of Foreclosures in 2022?
Despite the uptick in foreclosure activity, it’s actually a lower amount than it was during the pre-crisis period.
After the moratorium on foreclosures was lifted in 2021, the number of foreclosure filings started to increase. In September 2021, they were up 25% compared to the previous month.
Even with the number of foreclosed homes expected to increase in 2022, it’s still far lower than the pre-pandemic levels. This means that the amount of foreclosure loans that happen in 2022 will still be lower than the normal amount.
Will the Housing Market Crash in 2022?
It’s quite unlikely that the housing market will crash within the next couple of years. Instead, experts believe it will continue to grow.
Due to the rise of subprime mortgages, banks have started to tighten their rules to prevent these types of loans from causing more problems.
As long as new buyers keep coming into the market and the supply of homes for sale continues to grow, the market should continue going up.
If the number of houses for sale is crazy high, then the demand for houses would suddenly plummet, causing prices to crash.