Source: Norada Real Estate —
Record-low mortgage rates and shortage of inventory are keeping the US housing market strong as far as demand is considered. Home prices have been surging month-over-month breaking new records. While affordability issues worsen, low mortgage rates, growing savings, and a strengthening job market combine to keep homeownership within reach for many potential buyers. But will the housing market eventually crash? Let’s look at the most recent trends and housing market predictions for 2021 and 2022.
This year’s housing market has been exceptionally strong, with strong housing demand in virtually every region of the country. In the midst of this pandemic, the housing market has emerged as a boon for sellers and a cause of concern for buyers. For several years, home prices have been growing in the mid-single digits. The recent price increases in the double digits reflect the confluence of extraordinary demand and persistently low supply. Prices are rising as there is plenty of capital on the sidelines, as well as very cheap mortgage rates.