US Housing Market Will NOT Crash Like 2006-2009 Real Estate Bubble

Selling Real Estate
The US Housing market is in a much different position now that it was during the last real estate crash. The last real estate bubble had a number of factors that caused the housing market to crash, but those factors don’t exist today, other than the high home prices.

The last housing bubble had subprime mortgages, excessive new home construction, credit default swap craziness and investors buying numerous homes and trying to flip them. Today the US Housing Market is not in a bubble per se, since none of the factors like excess inventory or lack of buyer demand are present.

The 2022 housing market outlook still remains strong and there is little signs of a crash. Inflation is one factor holding up the housing market and real estate prices as well as low housing inventory. Negative factors are high housing prices but keep in mind they have been lagging for a decade since home affordability has been at an all time high. Its likely possible this is just the housing market returning to equilibrium.

We have been asked if the housing market will crash in 2022 and there is no way to know, but it would take some black swan event like an institutional seller dumping a million homes at once nationwide or massive forelosures, which aren’t on the horizon since the number of late martgage payments are at historic lows.

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