Will The Housing Market Crash In 2022?

Will The Housing Market Crash In 2022?


Hermosa Pier View from Sand Section Daryl Palmer Beach Homes

Will the housing market crash in 2022?  You say: “Gasp! Is that a possibility?” Everyone wants to know is if there will be a crash in the housing market in 2022 here in the South Bay Los Angeles…Really? If you’re thinking of selling or buying a home in today’s housing market here in the South Bay Los Angeles, you may be wondering how strong your investment will be after having such a huge run-up in prices in the last 2-3 years.You might be asking yourself: if I buy a home now, will it lose value in a home value drop? Or will it continue to appreciate going forward?

The good news is, according to the experts, the housing market is not projected to crash. Here’s why:

Supply And Demand

We’re still stuck in the simple law of supply and demand.
And while the number of homes for sale today is expected to improve with more sellers getting ready to list their houses this spring, we’re certainly not out of the “low inventory woods” yet.

Will The Housing Market Crash In 2022, Look at 2022 Home Price Forecasts

Here’s a look at the latest 2022 expert forecasts on home price appreciation:What’s the biggest takeaway from this graph? None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.

And here’s what some of the industry’s experts say about how that will play out in the housing market next year:

Brad Hunter of Hunter Housing Economics explains:

“. . . the recent unsustainable rate of home price appreciation will slow sharply. . . . home prices will not decline. . . but they will simply rise at a more sustainable pace.”

Danielle Hale from realtor.comagrees:

Price growth is expected to move back toward a normal range, but this is on top of recent high prices, . . . So prices will [still] hit new highs. . . . The pace of price growth is going to slow notably . . . ”

What Does This Mean for the Housing Market?

While home price appreciation is expected to continue, it isn’t projected to be the record-breaking 18 to almost 20% increase the market saw over the past 12 months. Overall, it’s important to note that price increases won’t be as monumental as they were in 2021 – but they certainly won’t decline anytime soon.

What Does That Mean for You?

With motivated buyers in the market and so few homes available to purchase, the imbalance of supply and demand will continue to put upward pressure on home prices in 2022. And when home price appreciation is in the forecast, that’s a clear indication your investment in homeownership is a sound one.

Bottom Line

It’s important to know that home prices are not projected to decline in the new year. Instead, they’re forecast to rise, just at a more moderate pace. Let’s connect to make sure you’re up to date on what’s happening with home price appreciation in our market, so you can make an informed decision about your next move.

Waaay More Stats Here!

For more info… watch the next 2 videos…

Tips For SELLING Your Home In The South Bay In A Sellers Market


Is This A Good Time To Buy A House

Or Look At My Entire Library In YouTube Here


Virtually Yours…

Daryl Palmer Real Real Estatetist

[email protected]

Re/Max Estate Properties RE# 1986622

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