Will the Housing Market Crash in 2022?
One of the biggest questions we’ve gotten lately is, “Will the housing market crash in 2022?” Rising inflation, higher interest rates, and expensive housing have many people wondering if a market crash could be on the horizon. Check our video below to see what we think about the housing market in Philadelphia, Lehigh Valley, and surrounding areas.
What is Affecting the Housing Market?
While it may feel like there is a lot of pressure coming from many angles, it doesn’t necessarily indicate a crash is incoming. What we have been seeing is more of a stabilization of housing prices. In contrast, the past few years were marked by ever-increasing prices. However, with interest rates increasing faster than wages, the high demand for housing is slowing down.
Lower interest rates over the past few years allowed people to buy more home than they would typically be able to afford. Also, the huge increase in working from home due to COVID served as justification for spending more on a home than one typically would. That demand is also starting to die down, allowing for some relief in buying pressure.
Even though we have been talking mainly about purchasing a home, the rental market is following a similar pattern. Construction prices and demand also skyrocketed during COVID, forcing landlords to increase rent. Now that people are heading back to the office, the demand for premium rental properties is also dropping.
Is Now A Good Time to Sell My Property?
At PBC, many people ask our advice about the future of the housing market. While nobody can predict the market with 100% accuracy, we can make some general assumptions. As always, be sure to do your own research as this is not meant to be any type of financial advice.
As we mentioned previously, it does seem like housing prices have been starting to level off. While it can be tempting to try to perfectly time the market to sell at the “peak,” that is nearly impossible. Rather, our general advice to customers is to sell at whatever time makes the most sense for you personally. There are a multitude of factors that go into deciding to sell your property. Many times, the current market is not that important. For example, if you are moving into another house, your closing date may be much more important.
Overall, if you are in a position to sell a property now, it may make sense to start the process. While prices may be stabilizing or even decreasing, there are not indicators that a full crash is imminent.
At Property Buyer Connect, we buy properties in any condition. If you are wondering if now is a good time to sell your property, message us online or give us a call today at 215-770-3122! We can give you a completely free, no-obligation cash offer for your property.