08/02/2022
Housing Market Predictions for August 2022
Many housing insiders warn buyers against trying to time the market as the economy wades through this period of uncertainty.
“Deciding to buy now or wait is going to depend on the individual buyer’s motivation and situation. Waiting may not be a viable option,” says Krista Forsberg, a real estate agent at Keller Williams Realty in Edina, Minnesota. “Even if a buyer can push pause on buying to later in the year or 2023, there isn’t likely to be significant improvement in prices or interest rates.”
Housing experts say they are keeping a watchful eye on the economy, which is being pulled in all directions by inflation, skyrocketing gas prices, the war in Ukraine and Covid, to name a few. While housing has been the star of the U.S. economy the last few years, there are signs of wear—namely, rising interest rates making it harder for buyers to access affordable housing.
“I believe the stark rise in interest rates scare both buyers and sellers; they don’t know if the rates will stay or continue to increase. This lack of predictability causes many buyers and sellers to just sit and wait,” says Steve Simmons, founder of October Real Estate in Los Angeles. “But others will scramble for a sale or purchase before things get worse.”
Existing-home sales dropped 5.4% from May to June, marking the fifth consecutive month of declining sales, according to the National Association of Realtors (NAR). However, the median sales price of these homes reached a record high of $416,000 in June, up 13.4% from a year ago. All of this indicates home prices are not dropping anytime soon.
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