Housing Market Predictions: Will It Crash Or Boom?
As we head into the typically active home buying summer season, it’s beneficial to know where the real estate market stands.
The long and short of it is that, in this market, you will have to bring your "A" game to buy the home of your dreams. Presently, there are significantly more buyers than sellers, and by nature competition for available houses is fierce. Bidding wars are common.
So is the market a bubble that will inevitably “pop” or crash, or will it continue to boom and balloon?
It’s impossible to predict with certainty, but if the number of houses for sale were astronomically high and in response the number of buyers willing to buy them plummeted, housing prices would also plummet and a crash would occur. So long as new buyers continue to enter the market and there aren’t enough houses for sale to meet the demand, home prices will continue to boom. The housing market exploded in 2021, and all forecasts indicate it will continue in 2022.
If you’re waiting for prices to suddenly plummet to what they were in the past, you’re making a mistake. Experts predict that prices will move up in 2022 by 10.8%, but they also forecast a significant cooldown in 2023, with prices climbing just 3.2%.