One concern associated with the housing market for 2020–2024 was that if inventory channels broke to all-time lows, home prices could increase more quickly during this time than they did during the preceding expansion.
Logan Mohtashami, a housing data analyst, discussed the importance of having a 23 percent price growth model for the housing market in 2020–2024 as a crucial indicator of balanced growth versus overheating, particularly given that inventory had been falling for years directly into our crucial demographic patch. When the market triumphs over anyone’s desire for balance, slow and steady always wins, but occasionally fate delivers you a lousy hand, and there isn’t much that can be done.
One aspect of the last two and a half years of housing in the United States that will go down in history is that we didn’t need to be concerned about housing deflation but rather housing inflation on both ends: home prices and rentals. This issue is very different compared to the housing credit bubble of 2002–2005. Then, the US mortgage market during the time experienced more sales, higher inventories, and a slower price rise, but there was also a significant credit bubble. As a result, fewer sales, fewer listings, and a considerably faster increase in property prices.
By October 2021, it was clear that inventories had no chance of exhibiting any year-over-year growth, and unless rates rose, 2022 would bring even greater inflationary housing price growth. The year-over-year comps will be significantly harder by October this year, so if the trend continues, we can anticipate further reductions. Click here to read more on the woes of home prices plaguing the mortgage industry.
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
Contact us today for more information.