The housing market today looks very different than a few years ago even when Shalom Lamm bought a home the housing market was completely different. Even though today the CEO Operation Benjamin Lamm has a comfortable home, who knows what his next housing adventure will look like. What does the future look like for the housing market? The real question is what will the housing market look like in 2022? Some have predicted that it will be a lot better than 2021.
As of this year the housing market inventory is quite low. In many states the competition still remains quite high. Due to this unique situation, a lot of people who would buy homes this year are waiting to purchase their homes in 2022. Even though we are not 100% sure of what 2022 will bring, we can try to predict that there will most likely be higher mortgage rates and higher home prices. Some people would have thought that the pandemic would have a negative effect on the housing market, but it is holding strong. There are several charts that show the housing prices in the US from 2020 to 2021. We have seen that the pricing constantly is rising. We have noticed that the pricing of homes has risen about 10% over the past year from 2020 to 2021. One thing that has a lot of people worried is that the price of housing is rising and the salary of the citizens are not and that is causing a growing concern. Many homes across the country are not affordable anymore to the average family compared to 10 years ago. The market is more favorable to renting over buying. With the higher demand for renting homes the monthly rental fee has risen. For those who can afford to buy homes have decided to buy multiple properties and rent them out. There are people who predict the opposite. They say that the prices of home will drop and become more affordable for the average family. There are two sides to this story. For the average family they are happy to see home prices drop but for those who invest, they become concerned.
Regardless of your viewpoint, Shalom Lamm knows we all agree how quickly things can change in a blink of an eye. As of this year the mortgage industry is more tight than it has been. Because of financial instability, banks are concerned with people not being able to make payments. Due to profitability concerns, banks have tightened the lending standards. In 2021 we are seeing the mortgage rates creep back up. When you compare prices in 2006, they are about 45% higher in cities like Dallas. Due to the slow down of construction, the housing inventory was low. As of this year construction has started up again. This will have an impact on the prices as well. Many of us are looking forward to 2022. It could mean a new start for most of us.