Are we entering a housing market crash in 2022? Well we've recently seen the beginning of a housing market correction taking place. Between Price drops and supply rising, most housing market predictions have expected us to arrive at this point. But with mortgage rates recently crashing, what does that mean for the future and will we be able to avoid a complete housing market collapse?
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The real estate market correction has begun. Now the question is what is next in this housing bubble. Before anyone can give a housing market forecast, it's important to remember that a real estate crash, if it is on the way, isn't necessarily going to be a nationwide thing. This housing market bubble is worse in some areas than other areas and so some housing markets are more primed for a housing crash coming than others such as Boise, ID. In Boise, close to 70% of all listings are experiencing a price cut of some kind. We've already seen house prices crash over 5% in this market as a result and there's a real possibility it will continue to get worse.
But the latest housing market news has been mortgage rates getting back down to under 5%. Mortgage rates play a huge role in affordability and can potentially change the outlook of a potential property crash. My real estate market forecast is that mortgage rates will continue to climb back up. So if they do, will housing market crash? I think it's definitely a possibility in some markets but at the moment, I don't believe we will experience a nationwide housing market crash because this time, there is no need to sell. People are not facing foreclosures yet and there still aren't any signs of risky mortgages. Until that changes, I believe nationwide we're looking at more of a market correction than a crash.
