Why Home Prices Might NOT go Down! Housing Shortage and Low Interest Rates

Despite rising interest rates, home prices in some markets is still going up. Cash buyers plus high demand is keeping home prices even though the real estate market is cooling off because of higher interest rates from the Federal Reserve increases. Home prices might start to fall in some markets, but it is unsure whether or not they will fall nationwide.

The real estate market has always been known as a hedge against inflation and more people are coming into the real estate market despite higher interest rates and historically high prices. Home affordability is rising as well as buyers are unable to maintain the same buying power they had just a few years ago.

Both 2022 and 2023 are likely to see more changes in the housing market, but it is not likely that real estate is in a bubble and the housing market will crash anytime soon.

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