The housing market bubble has officially popped and it looks like things are about to just get worse. The real estate market correction has already started but mortgage rates have now surged over 2% in the last 2 months and inflation is not slowing down consumers which is bad news for the housing market.
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PCE just came back higher than expected and this means that what the fed is doing is not working and the likelihood of a housing market crash just went up.
According to the latest housing market news, demand is already going down as these higher mortgage rates settle in. Many experts expect as part of their housing market forecast that this housing market correction is about to get worse and we could see a housing crash coming. On one hand, we need to see house prices crash to correct to current mortgage rates but there’s also problems ahead in the future that might cause a bigger housing market collapse.
Many experts are sharing as part of their housing market predictions that as long as inflation is a problem, we will continue to see the shift of what was once a housing bubble to a full on real estate crash. This is because the fed’s number 1 goal is to bring inflation down to 2% and right now with pce going up to 4.9% this last month, that indicates that demand for goods and services is not going down which means inflation will continue to stay high. My real estate market forecast is a gloomy one because based on the data from the latest housing market update, demand is continuing to plummet but new listings is starting to look like it may finally be stabilizing. So will the housing market crash? Well certain markets are definitely primed right now to see a property crash and even on a nationwide level, the odds have just gone up making it more likely than we’ve seen since the 2008 crash.
