Why the Housing Market Will Stay Strong for Years to Come
The national median sales price for a home in America ended 2021 at a record $346,900, up more than $50,000 in a single year. Estimates for this year vary widely, but one example is from Zillow, which predicts home prices this year to jump another 16.4%.
And look at the inventory picture. The National Association of Realtors (NAR) said unsold listings ended 2021 at an all-time low, down 18% in a single month to 910,000 homes for sale, as December marked the 31st straight month of year-over-year declines. That's 1.8 months' worth of inventory at the current sales pace. The NAR considers six months of inventory to be the desired pace.
Record-low inventory and strong demand will continue to bolster sales in a market that will be tempered by rising interest rates. The national average for a 30-year fixed-rate mortgage has broken through 4%, and with inflation rearing its ugly head ever higher, there has been talk of a real estate bubble, like the one that burst in 2008-2009 and helped cause the Great Recession.
Source Fool.com
