What will happen to the housing market in 2022?

This caused a surplus of homes to flood the market, sent home prices plummeting, and contributed to the recession. But in 2022 things are much different. Residential construction has fallen to its slowest pace since April 2021 and the housing market needs to build millions of homes to meet buyer demand.

What is a housing market recession?

A housing market recession occurs when home sales decline for six months straight, which officially happened in July 2022. The National Association of Realtors (NAR) just published new data stating that existing home sales were down 5.9% for July 2022 and 20.2% from one year ago.

How has the housing market changed over 10 years?

The housing market has experienced over 10 years of exceptional growth, where the median home price jumped an incredible 117% as of March 2022. This rate of growth has only been outpaced by the home price growth in the decade before the Great Recession of 2007 to 2009, where home values rose 121%. Home prices continue to surpass recent highs.

Are home sales down 59% in July 2022?

The National Association of Realtors (NAR) just published new data stating that existing home sales were down 5.9% for July 2022 and 20.2% from one year ago. NAR Chief Economist Lawrence Yun went on record to state, “We’re witnessing a housing recession in terms of declining home sales and home building …