Is the Housing Market Going to Crash Before 2021 Is Over? What About 2022?
It’s pretty unlikely that the housing market will crash in the next two years. Remember, home prices have already seen a 23% increase in 2021, almost triple original predictions. That’s a good thing for the economy!
Back in 2020, experts projected that home prices would keep increasing in 2022, growing at a slightly slower rate of 5.5%. Well, they’re still thinking home prices will grow, but more slowly than they have this year—probably around 3% with a median purchase price of $334,000.20 But after seeing how far off predictions were for 2021 . . . well, who knows what will happen.
So, the question that’s always looming: When is the market expected to crash? Here’s the deal. As long as new buyers continue to enter the market and there aren’t enough homes for sale to meet demand, home sales and prices will continue going up, and the market should stay healthy.
On the other hand, if the number of houses for sale was crazy high and the number of buyers willing to buy them suddenly plummeted, home prices would get slashed—and that’s when a crash would be something to worry about.