Everything You Should Know About the 2022 Housing Market

The 2022 housing market doesn’t make a whole lot of sense. At the start of the year, competition was fierce, with bidding wars on every home and lines out the door just to view an open house. Now, in quarter three of this year, interest rates have hit decade-long highs, buyers are more in control, and days on market are starting to creep back up. As a homeowner, investor, or renter, you need to know what's on the horizon so you can build wealth while others run for the hills.

Joining us today are James Dainard, Jamil Damji, and Kathy Fettke, a gaggle of real estate veterans and the expert guests on BiggerPockets’ "On the Market" podcast. They’ve seen up markets, down markets, and confusing markets like today. As investors who touch almost all corners of the United States, with different areas of expertise, they bring the facts on what’s happening in today’s housing market.

We talk about interest rate updates, when the “inventory crisis” will end, why demand has taken a nosedive, and whether or not it’s still a good time to buy real estate. We also talk about the state of the economy, inflation, and how the Federal Reserve may be working to put us into another recession. This up-to-date episode will give you everything you need to make smart buying or selling decisions in today’s housing market.

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Episode #343

00:00 Intro
04:13 Interest Rates and Inflation Explained
12:35 Housing Market Predictions
21:57 Where Are Home Prices Headed?
29:05 Is Now the Time to Buy?
41:07 The Inventory Crisis
47:43 Connect with Our Guests!
48:51 Key Takeaways

[webuyhousesdenvercolorado]

Learn sales and marketing. Once you know how to acquire deals at a discount you never fear what’s happening with the market because people will always need housing.

[katelynch]

Assuming that rates will be lower in five years is irresponsible. Check out rate trends in the late 70s - early 80s. Rates COULD be double where they are now in five years.

[purplephilosophy]

The PNW is still incredibly unaffordable (for renters and buyers) and it's largely because the absurd reaction to COVID killed small-time landlords so now, who owns the majority of the housing in Seattle? Hedge funds and foreign investors. That, combined with Seattle has kind of run out of room to build even if it were affordable to do so, is why this city's homelessness is sky-rocketing. Major props to anyone who's figured out how to successfully invest in Seattle without making the housing crisis worse.

[mpb]

Phoenix still has a long long way to go down. The big money institutional and iBuyers are staying away for now.

[BrianSchoedel]

The speed of these rate increases are making the US dollar so strong it’s hurting our trade partner countries and causing a global economic slowdown.

[andrewm]

If they don’t stop a wage price spiral the inflation we’ve seen will take years to subside. Commodities fluctuate but you increase wages and that’s not easy to undo and the costs of those increases cut into margins lowering valuations (why stocks have been in a record losing year) and are passed on to consumers. We were told rates were going up and people were still buying in May. Only the June rate finally slowed buying. Mortgages aren’t a 1:1 change with fed funds so tech charts would suggest we end up 4.5-6% prime. Buyers will get used to that and that couples with lower prices should stabilize the markets

[xjxy]

How about buying real estate overseas while dollars are strong

[alekfoy]

Just took an arm at 4.8 was super nervous about it but numbers will still work