The Future of Our 2022 Market
How interest rates, home values, and the recession affect real estate.
Today we want to cover all sorts of topics relating to our market, including interest rates, the coming recession, and home price appreciation.
First, what’s going on with home prices? What’s happening to your house’s value? All the experts are saying that we will see continued appreciation. The reason behind this is that we have a limited supply. Even with interest rates increasing, that’s still the case. Millennials are also out buying houses in full force, and they’re the biggest generation in the market right now.
"If you’re waiting for a crash, it will only get more expensive to buy."
Interest rates are going up, but that increase is encouraging people to get off of the fence and buy a house. They know that home prices and interest rates are still rising, so it’ll just be more expensive to buy a house in six months to a year from now. If you’re thinking about buying yourself, it’s always better to buy and wait than wait to buy. Real estate values have shown for years that they always go up over the long term.
The other thing we wanted to cover is the recession that experts say is coming next year. We’ve had six recessions since 1980, and during four of them, home values went up. Home values went down during two of those recessions, but home values only dropped 2% in 1991. Of course, the biggest recession in all our minds is the one in 2008. However, the data shows that home values go up most of the time, and this recession will be more like the other three than the one in 2008.
For those of us who’ve been waiting for a crash for the last 10 years, interest rates and home values will continue to go up, and it will cost you more and more to buy. You might have to keep waiting for that crash for quite some time. If you have any real estate questions, feel free to call or email us. We would love to hear from you soon.