flexiblefullpage - default
Currently Reading

Are We in Another Housing Bubble? Not Yet, Experts Say

Market Data + Trends

Are We in Another Housing Bubble? Not Yet, Experts Say

Median home prices are nearly double what they were a decade ago, and more big changes are ahead in 2022

January 7, 2022
housing bubble graphic
Image: Stock.adobe.com

Home prices were already rising before the COVID-19 pandemic struck in early 2020, but with even greater demand and lower inventory over the past two years, the median existing house price has surged to over $350,000, according to The Washington Post. In just the past year, the price of a typical single-family home has jumped nearly 20 percent, but experts aren’t yet concerned that we’ve reached another housing bubble.

House prices have been supercharged by record low mortgage rates which are prone to fluctuations in the year to come, and low inventory levels could also improve as builders recruit more labor and ramp up construction in an effort to meet rising demand.

The script on house prices is still being written. The most graceful scenario is for prices to cool off, go more-or-less sideways, and allow incomes, rents and construction costs to catch up.

This seems likely if mortgage rates soon push modestly higher, weighing on housing demand and ultimately prices. While forecasting when rates will rise is an intrepid affair, it stands to reason they will rise as the pandemic recedes and the economy returns to full health, prompting the Federal Reserve to wind down its bond buying and increase short-term rates.

Read more

Related Stories

Market Data + Trends

Single-Family Homes Appreciating Faster Than Ever, Especially in These Popular Metros

Single-family home prices have risen steadily since 1990, but not all of the nation's 50 most populated metro areas have seen equal growth

Market Data + Trends

Nation’s Top Home Builders Report Increase in Cancellations in Q2 2022

Fast-rising interest rates caused an uptick in broken contracts and new-home cancellations throughout the first half of 2022

New-Home Sales

Falling Mortgage Rates Motivate Some Buyers to Forge Ahead With Home Searches

Buyers formerly priced-out by elevated interest rates are continuing their home searches as borrowing costs drop to a four-month low

boombox1 -
native1 - default

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.