Correction: ???? Minute 7:21 The graph indicates 2020, It’s supposed to read May 2000 for the 19-month span.
I’m seeing a lot of opinions based on nonfactual information when it comes to real estate. Well, I’ve got some great information on the real estate market for 2022 so far as of April 2022. Let’s talk about housing demand, buyer demand, home prices, and foreclosures in 2022.
Housing demand in 2022 will go down. Yes, that means there will be fewer buyers. Redfin has a great article that shows how home prices have decreased over the last 4 weeks in April 2022.
Housing Market Update: Homebuyer Demand Dips as Holiday Lull Amplifies Market Cooldown
There will be less competition. Some buyers will be forced out of buying because the rate is increasing. This is a great article in the Wall Street Journal on the real estate market in 2022. If you have a subscription then you can read it: https://www.wsj.com/articles/decade-high-mortgage-rates-pose-threat-to-spring-housing-market-11650101401?utm_source=pocket_mylist
Home prices will continue to go up! What? How does that make sense? Well it’s true prices will continue to go up for a few reasons, but the main ones are that the demand is still high because there aren’t enough homes being built and that’s hurting the market. If interest rates continue to go up in 2022 that may change if they reach 9% or higher, so demand is conditional on the rates staying around 6-7%. Here are some great graphics from Keeping Current Matters. https://docs.google.com/presentation/d/1Sn0dDXWPWcoRvA-X8EnJ_-yGsTCADmfQ/edit?usp=sharing&ouid=106566799845187607039&rtpof=true&sd=true
What’s going to happen with Foreclosures in 2022? Well, It’s not looking bad right now. They are remaining artificially down right now and if inflation keeps rising up and rates rise dramatically that may cause some problems. Just keep on remembering that as of 2022 most homeowners have massive equity in their homes and lenders were very responsible when it comes to lending since the collapse of our economy in 2007-2008. Check out these articles:
If you have any questions or comments please reach out to me or comment below.