Approximately 13 years ago, the US economy was in free-fall, causing a collapse of the housing market that resulted in heavy repercussions for years to follow. Plenty of people lost their homes and livelihoods on a large scale. Housing values went down 30% or more. According to HSH, the trusted mortgage expert, several local real estate markets are still yet to recover from the crash. Currently, the outbreak and spread of the coronavirus is stirring up old fears of a real estate crash in the US. Is there an expected slowdown in the real estate market before 2022? Find out below.
Housing market forecasts
The real estate sector in 2021 is progressively blossoming into 2022. Housing and mortgage experts are still noticing a post-pandemic rebound—including job recoveries, stable mortgage rates, as well as supply and demand collaborating to support real estate sales. According to the National Association of Realtors (NAR), there is still high demand with very low inventory. However, buyers still express interest in entering the market.
In late 2020, real estate experts predicted that low mortgage rates and an increased number of individuals working remotely with flexible schedules would keep house sales on a gradual path. However, along the way, there has been a minor slow down in home purchases due to an unexpected price jump. Regardless, this price increase is purely based on numbers from the beginning of 2021.
These price changes were based on the events of the first half of 2020, with the pandemic causing massive panic. However, expect major changes and a positive shift in the real estate market as we progress into 2022. The bottom line is that home prices, and sales are still likely to remain higher during the rest of 2021 compared to 2020, while inventory remains low.
An increase in potential home buyers
Currently, realtors admit an increase in buyer traffic as more people are showing interest in buying homes. While buyer demand may have shown signs of softening, it appears that buyer traffic is likely to remain moderately strong throughout the major parts of the country. In addition, there is also an increase in the number of prospective home buyers enlisting the services of a mortgage expert in their quest for property acquisition. According to The Home Loan Expert, enlisting the help of professionals in the field is one the smartest steps buyers can do during the homebuying process.
Will the real estate market crash before 2022?
It is highly improbable that the real estate sector will collapse in the next two years. There has been a 23% increase in property prices in 2021, which is a plus for the economy. The looming question, however, is when the real estate market will crash
Provided there is demand for homes by home buyers and there is less supply to meet this demand, home prices and sales will gradually increase, and the real estate sector will remain healthy. With more buyers and sellers, you will be up for some heavy competition as you look for your ideal property. Fortunately, with sound advice from a financial or mortgage expert, you can make informed home-buying decisions.