In this video, I’ll give you a housing market update 2022 and determine if signals point towards a Housing crash in 2022. Home prices rose by nearly 20% over the last year, an astonishing rate of growth that was faster and more intense than even the run-up to the housing crash of 2008.

 

In this video I’m going to share my insight on my housing market prediction whether it’s going to crash whether it’s going to stay stagnant or it’s going to have exponential growth like it did the last 12 to 16 months I think it’s very good to understand what actually creates a market crash number one is very straightforward that specific product or service is not needed or it’s become saturated the second reason why an industry will crash is because that specific item will become obsolete and I believe the best example that I could give is blockbuster versus Netflix right.

The writing was on the wall that everything was going towards streaming and the companies that didn’t keep up they are non-existent now the third point is the demand is artificially generated which flows right into the fourth reason the supply drastically increases everyone references back to 2008 to 2010 there was a rapid increase in supply of the housing market and the demand stayed the same and significantly declined as people were losing jobs and all these other variables that happened and that ultimately led to a massive crash the last reason is what is called a black swan event.

In other words something politically happens whether it’s a war whether it is a presidential election let’s say that didn’t go as people would think it would go or a prime example is what we saw back in march of 2020 when Cobot hit the world shutdown employers had to fire and or they went out of business like restaurants did but ultimately those are the five reasons why industry crashes.

Now let’s dive into what I’m actually looking for in terms of indicators and why I believe that in 2022 I think real estate is here to continue to grow in terms of appreciation the last 12 months the average property increased by 30 percent in value which is historically speaking the largest increase we’ve ever seen with real estate in the US economy and I think that we’re going to see homes appreciate on average at least 10 to easily 20 percent in most markets.

Now why is that number one reason is debt is cheap we’re seeing interest rates at historic lows the prime rate is almost at zero which is exactly how lenders derive their interest rates whether you are getting a security line of credit with your stock account whether you are getting a mortgage with the lender accessing debt and getting access to cheap debt is going to lead to more accumulation of real estate the second reason why I believe real estate in 2022 is going to continue to do very well is because of inflation.

Inflation you’ll be able to check out another video where I break down inflation what it is how it’s derived my overall thoughts on inflation but when there is double digit inflation that we’re likely going to see if not closer to 20-30 percent of real inflation in 2022 people have to put their cash and they have to get it working for them more money is going to be coming off of the sideline with major hedge funds billionaires investors like you and I we’re going to keep accumulating assets like rental properties which ultimately increases the value and also for those that are buying houses people that are buying emotional purchases like the home that they’re living in.

They’re willing to pay and or overpay because that’s where they work out of right that has slowly turned into an asset because they are at home working full-time from home right or they’re willing to pay more for that property because they understand that that property is likely going to be worth 10, 15, 20 within the next couple of months the third reason why I believe it’s going to do very well is the overall indicators of borrowers now what does that mean that means specifically the down payment that people are putting down the average credit score.

I’m looking at it from a mortgage perspective to confirm and ensure that people are actually qualified to get these mortgages to purchase properties real estate is typically the lagging indicator typically stocks crash first other asset classes crash first then real estate eventually crashes every about 15 years on average and so all my indicators are looking at in 2025 and or potentially going into that black swan event into a presidential election in 2024.

They may turn off the money printing press right they may start increasing interest rates in 2022 but we’re not going to see a significant increase likely until 2023 2024 and really in 2025 where there’s less money coming in right there’s less money on the sidelines the debt ceiling has likely significantly compounded over time interest rates are higher so getting access to debt is more expensive but ultimately people are getting qualified from an income standpoint a credit standpoint.

They’re putting a sufficient amount of down payment down which reassures me for at least the next 12 months I think real estate is going to do very very well I want to hear your thoughts as to why the market’s going to continue to grow and or why the market may stagnate if not even crash in 2022 share your thoughts below this video and go check out my other video where i talk about inflation and why you need to get your cash working for you immediately.

Published On: January 10, 2022 / Categories: How Tos / Tags: , , , , /