Updated: Oct 27, 2022
“Will the housing market see a crash soon?”
“Is 2022 the year real estate sees a housing crash?”
Everyone is asking these questions right now and I’m sure you are, too. I’ll get to that because we need to talk about it!
The last two years have been, let’s be real – crazy.
To the cray cray.
We had a major global event that managed to change everything we knew and were familiar with, which was followed up by a terrible war in a country that many of us had probably never heard of.
The aftereffects of the pandemic are still being felt – rising prices, lack of service based employees, small business closures, etc.
And of course, all eyes turn to real estate.
Will There Be a Housing Crash in 2022?
Let me answer this right off the bat – no, I don’t think there’s going to be a housing crash this year or any time soon.
But Jamil, housing is crazy right now!
Yes, it is, but I don’t think there’s going to be a “crash”; I think that there’s going to be a pricing correction that will ultimately set things in a more positive way.
And let me explain why.
As mentioned, a lot of things converged together to create the landscape we’re in now:
The pandemic which led to shut downs of businesses and lives across the board
Remote work saw a huge rise in popularity
Millennials grew up to become homeowners
What this all means is that when the governments began to shut down businesses, many employees came to the realization that either they could easily work from home or their current job or industry wasn’t for them.
This led to a lot of homeowners getting locked into staying in their homes or moving to places where housing was better suited for them without the loss of their current position.
And some of that movement was led by the millennials, who are now at the age where they are looking for and purchasing properties.
With all of that, the Fed has raised interest rates in the hopes of curbing some of the spending crunches we saw in 2020.
The problem is, our current circumstances are on a whole ‘nother level than what we’ve seen before.
How to Properly Invest in Uncertain Housing Markets in 2022
So if people are staying in their homes longer, inflation is at an all time high, and houses in hot markets are soaring, how in the world do you invest in real estate?
I had this exact conversation with one of my Astro members, which you can check out here:
One big takeaway from that conversation was knowing the facts and the data that’s presented.
For me, I keep up to date on the market by learning what the data points are and what people are saying and reporting.
And most importantly, I try to learn and understand the mentality of my agents and my sellers. And they are worried.
They’re worried that the interest rate will get so high, they won’t be able to sell their houses. But that’s where we as investors come in because we can help solve their pain points.
There you have it – I don’t feel there’s going to be a crash, but more of a correction.
Real estate is one of those investments that’s actually protected from inflation, so the market – while uncertain – is still a good investment vehicle to chase after.