The 2022 Housing Market will see prices go down across half the country. Big macro trends like higher inflation, higher interest rates, a surge in home building, and a wave of foreclosures will leave their mark on 2022 Home Prices.
7 CITIES that are the Next Austin: https://youtu.be/1lM2jrrb_ew
10. HOME BUILDING SURGE: expect 1.5 million housing units completed in 2022 based on the huge surge in Housing Starts that occurred in 2021. This will bring much needed inventory to the market.
09. FORECLOSURE WAVE: data from Black Knight suggests there could be as many as 1 Million backlogged foreclosures heading into 2022. Now that the Consumer Financial Protection Bureau’s Foreclosure Ban has expired, it will be open season for banks to foreclosure on delinquent borrowers. https://www.blackknightinc.com/wp-content/uploads/2021/12/BKI_MM_Oct2021_Report.pdf?
08. FLORIDA IS NUMEBR ONE: Florida will be America’s strongest Housing Market in 2022, registering potentially 10% price growth over the next 12 months. Florida’s super low inventory levels and strong migration will keep it afloat for another year. But WATCH OUT in 2023. Prices could be heading down.
07. MIGRATION SHIFT: Growth hubs like Austin, Salt Lake City, Denver, and Boise dominated over the last five years. However, their reign is now over. Heading into 2022 these markets are too expensive and will begin losing people, pushing home prices down. Want to find 7 CITIES that will take their place? Check out this video: https://youtu.be/1lM2jrrb_ew
06. MORTGAGE RATES UP: Interest and Mortgage Rates will go up significantly in 2022, constraining affordability and pushing home prices down in certain markets. Expect the 30-Year Fixed Mortgage Rate to hit 4.0% by Year End. This will push mortgage payments up by over 10% at today’s prices.
05. INFLATION RUNS HOT: Inflation will moderate slightly, but continue running hot in 2022 at 5%. This higher level of inflation will actually hurt the housing market, as more home buyers delay or cancel their plans to buy due to inflation. https://www.redfin.com/news/inflation-homebuying-survey/
04. WEST COAST CRASH: Higher mortgage rates and inflation will be most damaging to West Coast Housing Markets where affordability is already significant constrained. Think San Francisco, Seattle, Denver, Salt Lake City, and Austin. Higher rates and lower inflation-adjusted incomes will crash prices in these cities first.
03. TECH BUST 2.0: Higher rates will also hasten a collapse in America’s tech industry, similar to the DotCom Bubble that burst in the early 2000s. Expect Tech Hubs like San Francisco, Boston, and Austin to lose a significant amount of jobs and their local housing markets to be negatively impacted as a result.
02. IDAHO IS THE WORST: The worst-performing Housing Market in 2022 will be in Idaho, where inventory is already up a massive 62% YoY. Prices in Idaho could decline by as much as 15% through the year, especially in Boise.
01. HOME PRICES FLAT ON AVERAGE: Home prices in America will register no growth on average, but will decline heavily in certain cities while still appreciating in others. Expect the Southeast US, including Florida, Georgia, and South Carolina, to continue performing well.
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0:00 Reventure Consulting Top 10 Predictions
1:04 #10: 1.5 Million Homes Completed in 2022
2:11 #9: 2022 is the Year of the Foreclosure
4:21 #8: Florida Will Be the Top Market in 2022
6:04 #7: Austin, Boise, SLC & Denver Migration DOWNTURN
7:33 #6: Interest / Mortgage Rates are Going UP!
9:15 #5: Inflation Runs Hot Again; BAD For 2022 Housing Market
11:28 #4: West Coast Crash in 2022
13:46 #3: DotCom Bust 2.0 Coming in 2022
15:41 #2: 2022’s WORST STATE for Real Estate
17:10 #1: Home Prices Flat in 2022; Down 30% over 5 Years
19:24 Hit the Like Button!
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