Forecast predicts that housing prices should stabilize into the new year.
According to National Mortgage Professional, though not as tumultuous as 2020, the housing market was red hot for most of 2021. Homeowners saw their home values skyrocket, using the opportunity to tap into their home equity. Meanwhile, plenty of people took advantage of near-record low mortgage rates to purchase a home or refinance their mortgage, which helped offset the cost of dramatic home price increases.
The past year also brought its challenges as home affordability issues grew even worse, according to a LendingTree study. Even with low rates, many households could not compete in a market where rising prices and bidding wars were the norm.
In the broader economic perspective, the year 2021 was equally hit or miss. More Americans returned to work and many negotiated for higher wages; however, inflation offset many gains. Even the COVID-19 pandemic shows no signs of slowing, despite the vaccination rate increasing.
Looking towards the future, LendingTree paints a lighter picture by listing the potential economic upsides in 2022. The predictions laid out in this article are based on the opinions of the author Jacob Channel, and editors Dan Shepard and Pearly Huang. First off, the housing market likely won’t crash. Because home prices have risen so much since the beginning of the pandemic, many fear we’re in a housing bubble – similar to the one pre-dating the 2008 market crash. LendingTree points out there isn’t any evidence to support this theory. Housing market fundamentals, such as people’s ability to make their mortgage payments, looks to remain strong in 2022.