Will The Housing Market Pipe Down?

After nearly two years of arguably the most insane growth in any asset class in all of mankind, it looks like the housing market is finally set to adjust to some sense of “fair-market value” although the term “fair market” has been lost and will likely be lost for some time (that’s a topic for another discussion) [END THE FED]. Q4 2021 median housing prices fell from $411,200 to $408,100.

While this jump from quarter to quarter likely seems minimal, it marks the first quarter with an overall decrease in median home value sale price. Additionally, we’ve seen mortgage rates climbing fairly steadily since the beginning of August of last year.

With additional rate hikes imminent from the Fed, mortgage rates will subsequently see a rise, and thoroughly discourage new buyers from entering the market, assuming prices hold steady. It’s likely that median home values will continue to decline well into this year, and number of homes sell will probably (although not necessarily guaranteed) will come down alongside. For anyone yet to cash in on the housing market…better luck next year!