Housing Market Predictions: Warns of a Fall in Real Estate Prices


Over the last few weeks, we’ve watched nearly every market go into freefall — the stock market, cryptocurrencies, and precious metals.


So far, one seems untouched: Housing – Investors may have reduced investments because of concerns about the long-talked-about housing market crash.


However, many think prices could continue to rise inflating the housing market bubble further — here’s why.

The US Housing Market Right Now

At first glance, it seems like the economic conditions in the housing market for first time home buyers have waited for could finally be here.

Interest rates are rising, meaning it’s more expensive to buy a house now than in previous months.

At the start of 2022, the federal funds rate was close to 0%, and many buyers secured mortgage rates between 2% and 3%.

But the fed rate rose to 0.33% in March 2022 and then again to 0.83% in May. As a result, mortgage rates are now hovering around the 5% mark.

Analyst Predictions for the Housing Market Bubble

In February, a poll of 33 property analysts found that these experts predicted US house prices would rise by 10.3% in 2022.

The prediction was even higher than the same poll from September when the same group estimated prices would rise by 8% this year.

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