There has been a great deal of chatter about if the value of homes is going to plummet. For a significant amount of time now, the value of homes have been significantly higher than other years. It has also been difficult for people to even find a home to purchase since the market is so hot right now. With that being said, all good things must come to an end at some point. (And that is if you see it as “good” – if you are a buyer, you may not see this as being something that is good!)
In the beginning of 2020, the price of a house rose 41%. That continued to the beginning of this year. That increase is something else! Along with that increase, the interest rate decreased greatly as well. This created some great scenarios for some people. It has been this way for two and a half years – which is a decent amount of time. The majority of people do not see the housing market stopping.
Two and a half years of people buying homes as much as they can since the interest rate decreased caused supply and demand to play a big role in the housing market as well. Since the amount of houses available to purchase has been low, the prices of the homes have stayed high. We are not at a point where the interest rate is not as low as it was, which may cause the demand for homes to decrease.
With this being said, it is likely that the housing market will decrease. However, that does not mean there will be a significant housing market crash like we experienced in 2008. As of right now, this appears to be the general consensus for most professionals who are knowledgeable enough to make an educated guess in this situation.