When is the housing market going to crash?

When is the housing market going to crash? Said everyone. Let us check our crystal ball.

The reality is there is no one single way to figure out if housing market values will adjust but we can definitely pay attention to some historical data key points that have helped us in the past to determine where the housing market is within our economic cycle. Housing starts is a great way to determine that.

Housing starts refers the amount of new single family homes being built in the US. The rate of housing starts is a great way to monitor when housing market values will likely be affected. Decline in demand because of external factors like trade and pandemics affect the affordability of materials and labor supply.

Experts generally agree that once you start noticing a decline in housing starts over a period of 3 months, we are likely to enter into a recession within 13 months from the beginning of the decline in housing starts. So where are we right now with housing starts?

According to the US Census Bureau, 1,769,000 new housing starts were counted in February 2022, a 6.8 percent increase from January. Therefore, to all the eager home buyers out there, more homes are being built and from this perspective, there is still no sign of property values declining yet.

It’s more than ever the best time to sell property for more than you expected. Reach out and we’ll show you how.