As Recession Looms Near, Don’t Set Yourself Up to Become a Victim of the Next Housing Crash
With 3 valuable tips every home buyer should know before their next big home purchase
Federal Reserve chair, Jerome Powell, tackled the booming housing market in a recent talk, as he told home buyers and property owners, “you need a bit of a reset.”
But why these sudden remarks about the US housing market?
Well, housing prices in the United States have increased by 37% over the past two years, making it a faster rate of increase than when the market was leading up to the 2008 housing crash.
So, the Fed knew they needed to act, and they did accordingly.
The US central bank raised interest rates this spring, which has led to higher mortgage rates. And as a result, it has officially ended the housing boom (i.e., a seller’s market) that began right before the COVID-19 pandemic. Add to this, mortgage applications have declined from last year, down 16%.
This has left many Americans and economists wondering if the US economy will experience another crash in the housing market. And if we see a crash, will this crash be worse than the last one?
