Common Sense in Real Estate | The 2022 Real Estate Market

#housing2022 #housingmarket #Housingbubble #housingdemand #tristanahumada It's obvious to anyone doing any type of research that there is a short supply of homes for the current demand in real estate that's tied to the availability of homes for sale. Let's see where the interest rates will be for 2022 and where the real estate housing market will end up at the end of 2022. 

I'll jump into a few articles and see what the overall consensus is when it comes to real estate for 2022.

Let's talk about the basics of supply and demand. Some of you may need a refresher: https://www.investopedia.com/ask/answers/030415/who-discovered-law-supply-and-demand.asp#:~:text=Alfred%20Marshall,-After%20Smith's%201776&text=In%201890%2C%20Alfred%20Marshall's%20Principles,the%20market%20is%20in%20equilibrium.

The 10 Year US Treasury bond and the Mortgage Rates https://mct-trading.com/10-year-treasury-impacts-mortgage-rates/

The rates are stable as of May 6, 2022 https://www.foxbusiness.com/personal-finance/todays-mortgage-rates-may-6-2022

Why Mortgage Rates will remain stable in 2022 https://www.syracuse.com/business/2022/05/why-the-fed-wants-homebuyers-to-face-higher-mortgage-rates.html Lawrence Yun, chief economist for the National Association of Realtors, noted that the rate on the 30-year mortgage has risen far more this year than the federal funds rate. “This implies that the market is already pricing in around eight to 10 rounds of [Fed] rate increases this year,” Yun said in an email. “If inflation turns higher, then the Fed will need to be even more aggressive, and this will further bump up mortgage rates.”

Redfin Chief Economist: Despite signs of the housing market cooling, prices will remain high https://jnews.uk/redfin-chief-economist-despite-signs-of-the-housing-market-cooling-prices-will-remain-high/

Housing Market Update by Redfin May 2022 https://www.redfin.com/news/housing-market-update-record-spke-in-price-drops/

Keeping Current Matters Infographic on the real estate Market 2022 https://www.mykcm.com/2022/05/06/2022-housing-market-forecast-infographic/

National Association of homebuilders indicates that homes are unaffordable for 70% of the population in the US: https://www.nahb.org/News-and-Economics/Housing-Economics/Housings-Economic-Impact/Households-Priced-Out-by-Higher-House-Prices-and-Interest-Rates?_ga=2.261114253.1225291056.1645301419-1140320668.1645301419

A great article identifying Supply and Demand as being the chief problem in the housing market. This article is well written and talks about Utah real estate in 2022: https://www.deseret.com/utah/2022/5/5/23057251/housing-market-predictions-solutions-utah-not-in-my-backyard-high-density-worst-enemy