The housing market is notorious for sharp turns and rapid ebbs and flows. But the pandemic has made an already volatile market all the more unpredictable. Even still, forecasters are starting to see the forest for the trees with housing. Here's what the residential real estate world could look like as we head towards the end of the year.

## More of the Same Real Estate Forecast?
The combination of high mortgage rates, insanely high home prices, and inflation are all turning off prospective buyers. A report from Zillow claims that mortgage payments are 7% higher than in June 2019. However, prices are [forecasted to increase by another 6.6%](https://www.noradarealestate.com/blog/housing-market-predictions/). And wage increases aren't keeping up with the skyrocketing inflation either, meaning that it seems unlikely that home prices will fall anywhere in the near future.

There is some good news, however. If you are in the market to buy a home this fall, [your options will likely increase](https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/). Realtor.com forecasts that there will be a 15% jump in housing stock over the next few months. So if you're financially ready to start looking for a home in the second half of 2022, chances are you will have the luxury of choice.

## Buy Now or Wait it Out?
Above all else, you want to be in a financially stable place before you focus on buying a house, regardless of how the market looks. And for many, the market is irrelevant - you may have no choice but to move, or you're ready for a change and don't want to wait forever.

Frankly, this is a much better approach to purchasing a home than taking the temperature of the markets every few months. It's always best to try and shop within your budget and needs.

However, you also don't want to sacrifice everything just to purchase a home; that's usually how you'll end up with immense regret or live in a home you aren't comfortable with. There's also an argument for waiting for prices to go down if you aren't in much of a hurry, but recognize that they may not be lower by the time you need to purchase and could even be higher.

## What About a Housing Market Crash?
Experts don't predict a housing market crash this year. The rising prices have affected the market significantly. Still, the prices aren't jumping at an alarming rate, even if they have grown exponentially over the past few years. The demand for homes is very high, and once the stock has satisfied the demands, the prices will likely fall. Whether or not the 15% jump in stock forecasted for this year will be enough to meet the needs remains to be seen. Affordability is still an issue, and with prices where they're at, anyone with limited financial resources will still balk at the options offered, no matter how many there may be.

The housing market forecast is based on pre-existing patterns, and it's a market that always finds a way to tip back the scales toward balance. Currently, we are seeing a stalemate between homeowners who still expect to receive offers at or well above their asking price and buyers who are looking at completely different interest rates than 6 months ago. This will lead to many buyers choosing to rent for another year, and many sellers decreasing their asking price. The market could be on the precipice of a correction.

Waiting for residential real estate prices to drop may not be a feasible option. Instead, opt for staying within your budget and keeping a close eye on the market.

If you want to take advantage of selling your home before the market is no longer in your best favor, now is the time! We can help you sell and close on your home in as little as 25 days.

__Learn more and reach out for information [here](https://www.taidacorp.com/contact).__


The housing market is notorious for sharp turns and rapid ebbs and flows. Here's what the residential real estate world could look like as we head towards the end of the year.

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Residential Real Estate Forecast | Fall 2022

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