When is the Housing Market Going to Crash 2022 | Why market numbers do not project a crash yet
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When is the Housing Market Going to Crash 2022 | Why market numbers do not project a crash yet
Mortgage rate increases have certainly put a damper on price increases in Arizona Real Estate.
Although year-over-year prices are still positive, prices have certainly fallen from their peak earlier this year.
Do you consider that a "real estate crash"?
If your home has doubled in value over the last few years - as many have - is a 10% to 15% pullback a worrisome event?
A price drop is only worrisome if owners cannot afford the payments anymore.
That's what happened in 2008 and lenders decided to sell to recoup what they could.
The numbers don't support that event today - at least not at the present time.
Stay tuned to these market updates to understand what is happening to home prices in Arizona Real Estate.
Thank you for the summary. I believe that the market exuberance and price increases have been driven by three factors - COVID relocations, Airbnb investments, and corporations getting entering the single-family housing market for rentals, especially in Arizona. I believe that we may have overbuilt and that the fate of the market lies in the hands of Airbnb investors and corporations. If Airbnb investors can't afford the mortgages and/or corporations fail to meet their ROI targets, then the market could shift in a manner similar to 2008. Maybe not as drastic, but still a significant shift.