Predicting When the Housing Market Will Crash: Housing Bubble Alert

Todd and Oana talk about the potential housing market crash in 2022 or 2023 and when that will likely happen. Many people have claimed there is a housing bubble and that high home prices will cause the housing market to crash in 2022. In fact there are four factors that caused the last housing market to crash. These were high foreclosures, high inventory, over lending and over building.

In the current real estate market, none of those factors exist. Actually what exists is low inventory, tight lending, low building and low foreclosures. There is very little evidence that the housing market will crash in the US before 2023 and until these factors start to change it appears much of the increase in home values are from inflation as well as people shifting assets to safer long-term assets like real estate.

Until these things change there is no way to predict when the housing market will crash, if it does at all.

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