MARKET & TRENDS
2022-2023 OUTLOOK
Inflection Point: What Sudden Housing Market Changes Mean for Investors THERE ARE STILL OPPORTUNITIES IN 2022 AND 2023 FOR INVESTORS WHO DO THEIR HOMEWORK.
by Rick Sharga
Well, that was quick! What could possibly stop a
not overnight. Astute industry observers have been seeing signs of weakening demand since before the Federal Reserve began its all-out war on inflation, which in turn led to the steepest, fastest increase in mortgage rates in the past 50 years. The signs of a market slowdown were there for anyone who knew where to look: June marked the sixth consecutive month of lower existing home
sale, with average days on market at less than a week in many cities? What could stop a housing market with all that momentum? Apparently a 2.5-point increase in mortgage rates was all it took to turn the market dynamics from “all systems go” to “reverse course.”
white-hot housing market on pace to see 6.2 million existing homes and another 700,000 new homes sold in 2022? A market with home price appreciation up 20% on a year-over- year basis? A market where demand continued to be much higher than the historically low level of inventory of homes for sale? A market characterized by bidding wars on properties across the country as soon as the homes were listed for
IT ONLY SEEMED TO HAPPEN ALL AT ONCE To be fair, the shift in market dynamics happened over time,
70 | think realty magazine :: september - october 2022
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