10/20/2021
🍁🏡Real Estate Forecast🏡🍁
I have had quite a few clients and past clients reach out to me on predictions of what will happen in the housing market in the coming year. 🤓
For those looking to buy or sell Real Estate in the next 6-18months, you may have been thinking about what you can expect on a very unpredictable market. If you would like a list of resources, here are 4 reports from different resources. Not all reports are created equally or have the same results, they have ranged from an expected increase of 2.2% over 2022 to the most aggressive prediction of 16% in 2022 and another 6% in 2023
All in all, the consensus seems to be that we will see some kind of increased appreciation, increased interest rates, and no source that I have read expects a crash. But again, no one knows for sure. Do your due diligence and I will and can help you do that!
The best quote I felt from the 4 articles: "There’s one thing the experts all agree on: Don’t expect a real estate market crash, similar to what occurred in 2008, anytime next year...Plus, many of the forces behind the 2008 crash simply don’t exist right now. “Home price appreciation is being driven by supply and demand — not speculation or bad lending practices like years ago — and household formation continues to increase as Gen Y and Gen Z come of age,” he explains."" Link 1
Some other highlighted quotes from articles below:
"Mortgage interest rates are likely to go up for several reasons, including continued economic growth and higher yields on U.S. 10-year treasuries, which often directly influence interest rates on 30-year fixed-rate loans,” Sharga says. Link #1
"In the next 15 months—through the end of 2022—Goldman Sachs is forecasting U.S. home prices will soar another 16%...The supply-demand picture that has been the basis for our call for a multiyear boom in home prices remains intact," the Goldman Sachs researchers wrote in their report. “Of all the shortages afflicting the U.S. economy, the housing shortage might last the longest.” They don’t see prices correcting anytime soon; in fact, they are forecasting another 6.2% jump in 2023" Link #2
"The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.3% from August 2021 to September 2021, and on a year-over-year basis by 2.2% from August 2021 to August 2022." Link #3
"But, we do forecast house price growth to moderate in 2022, with full year house price growth of 12.1% in 2021 followed by 5.3% in 2022." Link 4 (from July)
https://themortgagereports.com/85263/housing-market-predictions-2022
https://finance.yahoo.com/news/high-goldman-sachs-predicts-home-200000188.html
https://www.corelogic.com/intelligence/u-s-home-price-insights/
http://www.freddiemac.com/research/forecast/20210715_quarterly_economic_forecast.page
Collin Rue
C3 Real Estate Solutions
719-339-5106
[email protected]