5 Reasons Why The Housing Market Will NOT Crash. Housing Bubble Watch 2022

The housing market won’t crash in 2022. It won’t crash in 2023. There isn’t a housing bubble, just a return to a normal healthy real estate market. Despite the warnings of the “housing crashers” who have been predicting a housing downfall for the last 4 years, home prices are up 50% from 2019. While home prices are certainly being affected by high mortgage rates, home prices are adjusting back to near term equilibrium prices and a normal annual sales cycle.

The key reasons why the housing market isn’t poised to crash are as follows:
– There are a record low number of foreclosures
– Previous mortgages were given at high lending standards
– There is still a shortage of total supply of available homes
– Millennials, GenZ and immigrants are flooding into the housing market
– New home builders haven’t built enough new homes in the last 15 years.

It would take a number of these factors to be removed to have the housing market crash, but they are solidly holding up the housing market despite short term interest rates being higher than what we have experienced the last few years.

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