Will the housing market crash in 2022?

While the housing market on a national scale has seen prices decline since the all-time highs of mid-2022 amid high interest rates, experts are noting that a sudden and abrupt housing market crash is unlikely, based on current market conditions.

What is a housing bubble?

In economics, a bubble is defined as a period of rapid market value growth of an asset – in this case, homes. Considering the fast pace of the housing market that lasted roughly the length of the COVID-19 pandemic, rapid market value growth accurately describes the housing market up until about midway through 2022.

How did the housing market react to the financial crisis?

In the years leading up to the financial crisis, a complete and utter frenzy overtook the housing market. Ready to profit, homebuilders went on a building spree. It meant that once the market started to slow in 2006, the surplus of new constructions quickly put negative pressure on prices.

Did home prices rise again after the housing crash?

But a strange thing happened on the way to the housing crash: Home values started rising again. In fact, housing prices have increased for three months in a row, according to the latest Case-Shiller home price index.