2022 Housing Market Predict: When Will Prices Come down?

A new normal is emerging in the housing market as demand falls and mortgage rates increase globally. As a result, analysts have been formulating their predictions for the upcoming housing crash. Here, we will examine the sector’s current situation and discuss the housing bubble will pop in 2022 in this post.

Housing Market Situation

As interest rates rise, the housing market in the US is uneven. The Federal Reserve increased interest rates by 150 basis points. And suggest that it would keep up the trend at upcoming sessions. The most probable situation is that the bank will increase rates by 75 or 50 basis points in July and by 0.50% in August. After that, it will resume its regular 0.25 percentage point rate hikes. For obvious reasons, historically, the housing sector has performed poorly when interest rates are high. The highest peak in more than a decade has reach in mortgage rates. Because of this, many people lack the desire to take out mortgages.

Predictions For The August 2022 Housing Market

As the economy navigates this time of uncertainty, several industry insiders in the housing industry advise buyers against trying to time the market. Whether a buyer chooses to buy now or wait will depend on their reasons and conditions. According to Krista Forsberg, a real estate agent with Keller Williams Realty in Edina, Minnesota, waiting “may not be a viable option.” There isn’t expected to be any change in pricing or borrowing rates. Even if a buyer can delay buying until later in a year or 2023.

According to housing experts, The economy is being pulled in many different directions by factors. For example inflation, increasing gas prices, the conflict in Ukraine, and Covid. Despite being the key driver of the U.S. economy for the past few years, housing is beginning to show its age. For example, rising loan rates are making it more difficult for purchasers to get cheap property.

According to the National Association of Realtors, existing-home sales decreased 5.4% from May to June. Making it the fifth month in a row that sales have decreased (NAR). However, the median sales price of these houses increased 13.4% from a year ago to a record high of $416,000 in June. All of this suggests that home prices won’t be dropping soon.