Source: Fortune —
It’s understandable that some sidelined home shoppers think this unprecedented housing market is set to pop. They see an ongoing real estate run—which has sent U.S. home prices soaring 19.9% over the most recent 12-month period—that echoes the last frenzy, which ultimately culminated in the 2008 housing crash and subsequent foreclosure crisis.
But not only does a housing crash in 2022 look very unlikely, prices could actually go even higher. At least that’s according to Redfin’s 2022 real estate outlook, which foresees prices continuing to climb next year.
That said, Redfin does forecast that the rate of home price growth will slow—by quite a bit. By the end of 2022, the real estate brokerage predicts 12-month home price growth will be at 3%. If that rate comes to fruition, it’d mark a 16.9 percentage point drop from the current level of price growth. It’d also mean the housing market would shift from a historic housing boom into a more normalized market where would-be buyers might actually have some time to think through their purchase.
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