Will the housing market recover? Although we can never know for certain, economists can closely predict what may happen in the upcoming months and years.
The housing market will not recover for years?
At this moment it is predicted that in the upcoming year there will be a vast improvement in the US housing market this is due to the market slowing down and offering little to no interest rates. However, some economists predict the opposite and believe that the housing market will not recover for years, and may instead, crash again.
The housing market ended with declining sales
While interest rates might sound scary, they did little to deter potential buyers. The housing market last year ended with declining sales for both new and already existing homes but these numbers were no different then the year before. There were many different predictions made by economists about the end of last year. One of these predictions was that sales activity and home prices had reached a major peak and could no longer increase. This means that there is potential for the price to peak and decrease earning the interests of buyers.
These mortgage rates can install fear into potential house buyers
When talking about the house market it is easy to forget about existing home sales. Existing home sales have been declining after reaching a five-year peak 2 years ago. In the year 2018, last year, sales dramatically decreased to 3.1%. This low percentage was a major sign that the housing market was declining rapidly and may undergo a major crash.
Another note to have when dissecting and answering this question is that mortgage rates are predicted to continue to increase until it hits 5.5% this year. These mortgage rates can install fear into potential house buyers and in turn affect the housing market. The housing market has always recovered one way or another. In the last Great Recession, the housing market took a deep crash and now the housing market is the best its ever been.