What’s Happening to the US Housing Market in 2022?

What’s Happening to the US Housing Market in 2022?

Hello, friends!
This is Igor Svechin.

I want to talk to you today about the trends in the US housing market in 2022.

From time to time in the US media and in the conversations of real estate investors and ordinary citizens, the topic appears that the housing market may collapse in the very near future.

In my opinion, the truth is that no one knows what will actually happen. 😉
Even professional analysts miss the mark, let alone the private opinions of private citizens.

And further. What is a “market crash” anyway?
Is it like he disappeared altogether? Did prices freeze at a certain level on it, or did prices fall catastrophically down?

I think it’s reasonable to think of a 10% or more drop in real estate prices as a “crash”. Perhaps this is the most likely outcome in the coming years, but this will not happen tomorrow or the day after tomorrow, but rather by the end of 2022 or during 2023.

At the same time, even with a 10% fall in prices, the US real estate market will not cease to exist, will not cease to bring profit to investors, but will only slow down slightly.

It is reasonable to take these risks into account when investing.
Look for properties with an additional potential of 10% or more in order to minimize your financial losses or completely level them.

When it comes to house prices (or the prices of anything on the free market), it all comes down to good old supply and demand in the end.

Of course, other variables such as stocks, inflation, and interest rates matter, but they only matter to the extent that they affect supply and demand.

Now the demand is much greater than the supply. This has been a dynamic over the past few years, and is the reason for the sharp rise in prices.

If you’re thinking to yourself, “Low interest rates have driven up prices,” it’s true! This is an extremely important factor because it has increased demand. When interest rates fall, housing affordability increases, which increases demand. People can afford more, which is why more people are choosing to enter the housing market, otherwise known as rising demand. Everything depends on supply and demand.

For a crash to occur, we need to see a significant shift from an environment in which demand exceeds supply to an environment in which supply exceeds demand. The only way to lower prices is when supply exceeds demand.

It will happen? And let’s see. 😊

And tomorrow, let’s talk about what’s happening with supply and demand. An important caveat: I express my subjective opinion to you, so I do not pretend to be the ultimate truth. I just invite you to join the discussion and reflect on the topic.