October Update: Is the housing market going to crash anytime soon?

Dated: October 19 2021

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Is the housing market going to crash anytime soon?

 

I get asked this question all the time and truthfully, it’s hard to be 100% accurate. The market can fluctuate randomly. In my professional opinion, I don’t think so! The demand for homes will be around for a while. The frenzy over homes that I’ve been seeing will probably even out but not crash.

 

Here are the top reasons I feel the housing market won’t crash:

✔️ Prime Rate Remains Steady
The Fed has already announced that the prime rate will remain close to 0% throughout 2022.

✔️ High Lumber Prices Keep Building Rates Low
It’s too expensive for builders to build like they were. This means less Inventory in the market. When there’s less inventory, but plenty of demand, it keeps pricing rising like they have been this year.

✔️ Demand is Still High
As long as the demand for housing is still high, the market won’t crash. It’s when the supply greatly exceeds the demand that prices start to fall and sometimes even plummet.

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Justin Hemker

Justin Hemker is a Triangle Area Real Estate sales and marketing expert. You will have a hard time finding a Realtor who truly cares for and works harder for his clients, has more passion for his job,....

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