We keep getting asked, “Is the housing market going to crash?” And that’s a valid question, especially since what we saw happened back in the recession after the ramp up, like we kind of experienced the last couple of years. I worked through that environment. I, too, instinctually have that response. However, we’re in a very different climate. I’m Anne Stewart, I’m a principal broker with eXp Realty and the Stewart Group Real Estate Team. According to reputable national sources, we will not be experiencing a crash similar to that at the 2008 – 2012. While it is unprecedented, what we’re seeing out here in double-digit appreciation and a fever-pitch of buyer demand, we’re simply not in the exact same environment.
So, is the housing market going to crash? While experts say we’re going to go up three times in the interest rates in the coming year, it’s not enough to have our housing prices slide backwards. In fact, we’re in such a housing shortage and have such a growing demand for housing that we will still conservatively see values go up, not in the double digits that we were used to seeing in the last year, but maybe between four and six percent.
With the interest rates predicted to go up over the course of this next year, that only means buyer demand could get even stronger as they try to absorb the inventory and catch those low interest rates. We’ve had historically low interest rates for over a decade now. And for those to go up so substantially that it would impact prices, it would have to be pretty dramatic. So most experts are saying it’s going to go up and it will slightly affect things. We’re not going to see those massive gains that we were used to in the past year, but it’s still going to create a housing shortage which ultimately impacts prices going up.
It’s probably going to be another challenging year for home buyers in the Portland area as we’ve been hovering right around the one month marker, which means we’re probably going to experience in 2022 another year similar to what we experienced in the last year. The good news is, as a home owner, you have a lot of leverage and you can really see favorable terms. If you’d like more information and you’re thinking about selling, give me a call.