The housing market boom came due to a disproportion of supply and demand in the market, contributing to a jump in home prices. At the same time, shrinking mortgage interest rates lured buyers into purchasing a house.
The pressing question for every home buyer and seller in the current hot market is the market going to crash in 2022?
According to experts, a crash may be a big word, however, they expect the market to flatten out.
First, experts predict that the construction of new houses will increase to 1.68 million units in 2022 from 1.38 million in 2020. With more homes in the market, the price may flatten as there will be less strife among the buyers.
Second, experts predict mortgage rates will rise to a full percentage during 2022. The low mortgage rates came as a result of actions taken by the Federal Reserve. However, as the market stabilizes, the Fed may change its strategy.
For the American homebuyer, this means that in the future, there will be an increase in mortgage rates. However, so will the supply of houses, which most likely will contribute to lower home prices.