Following the downturn during the height of the COVID-19 pandemic, consumers were eager to return to buying and wanted to take advantage of historically low-interest rates, shocking Americans as they plummeted to nearly 2.4%! 

Mortgage interest rates are currently holding around 6% as we near the end of the second quarter of 2022. Since June of 2021, that rate has doubled, but prices remain high, leading to a dramatic drop in home mortgage applications. This may mean that sellers, who received multiple bids recently, may be forced to lower asking prices and accept lower offers.

Read on as we discuss housing market predictions from some of the top experts in the field for the summer of 2022 and beyond in Charleston, SC.

Real Estate Bubble

What the real estate industry calls a bubble is a situation in which market demand is high, and buyers bid up home prices. This leads to home prices being artificially inflated. This can leave recent borrowers owing more than their home is worth.

In 2008, the US real estate market saw a crash that followed a similar trajectory as the current one we are in. Many people who remember that crash like to predict that the same thing will happen in 2022, but what are the experts predicting?

There are varying opinions on how the current market will wash out throughout the rest of 2022. While many insiders think the market will remain strong as people rush to buy before interest rates increase, others predict that buyers will back off and wait for interest rates to fall again.

The most popular opinion seems to be that the continued supply and demand issues combined with rising interest rates will successfully stabilize the market and prevent another bubble burst as the US has seen in the past.

Supply & Demand 

After the housing market crash of 2008, new home construction dropped off quickly and never regained the momentum it needed to keep up with the growing US population. Mix that with buyers becoming suddenly hungry to purchase homes after the pandemic, and you get a meager supply and high demand. 

In fact, the market became so hot that sellers took multiple offers for way over asking price! This pushed home prices above market values and further drove the market towards an upper limit for consumers.

But unfortunately, while home prices were climbing quickly, so was inflation. In addition, consumers’ wages have remained stagnant while living costs continue to soar. Seeing this unsustainable dynamic, the federal government stepped in and increased mortgage lending rates to cool off the market.

What’s Next?

Things have changed significantly since the last time the US saw a real estate market crash, both in the industry and with buyers. What happened in 2008 didn’t go unnoticed by consumers. In fact, it seems to have created discomfort about buying more than they can afford—whether a bank tells them that they can or not.

We can’t predict what will happen, but we know that our real estate team is the best choice to help you in your move. We have the systems in place to help you with your most important asset. We have succeeded in getting our clients top dollar for their homes no matter what market we are in.

Work With Our Team To Have Security 

With so much uncertainty in the market, sellers will want a real estate team that gives them the most security. Our team can give you that security! Not only do we have the experience of navigating our clients in uncertain times, we have our guarantees and programs that provide you the comfort of knowing that we have your back! We will guarantee to sell your home, or we will buy it!* Call us now at 854-800-3100 to learn more about this program and all the other programs we offer to our sellers!

 

*Conditions Apply. Call for Details.