US house prices are set to decline in the next few years after a 40% boom during the Covid-19 pandemic, with rising interest rates increasing the cost of mortgages for new buyers. However, prices are unlikely to fall as they did during the 2008 market crash, as lending standards have become more robust.
What is the state of the US housing market? What do analysts expect for 2023 and beyond? Here we take a look at US housing market predictions for the next 5 years.
Housing prices in the US, as in other countries, are driven by the supply of properties on the market, as well as interest rates, which are used as a basis to set mortgage rates and therefore are an important factor in real estate market predictions.
US house prices fell 30% from the peak of the market in 2007 to the lows five years later. Prices fell by the fastest pace ever over a one-year period during the financial crisis, dropping 12.7%, as the market became distressed with forced sellers, mortgage defaults and home foreclosures.
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