Is a new housing market crash coming in 2022?
|Written by: KYLE BACKER AND ELINOR TUTORA |
Last year was anything but normal — especially in Arizona’s residential real estate market. Median sale prices rose in Phoenix from $325,000 in January 2021 to $404,300 by October, a 24.4% increase, according to real estate website Redfin. Houses listed for sale saw fierce bidding wars with buyers willing to contort themselves to meet sellers’ demands, which include such concessions as renting the home back to the sellers for a period while they found a new house to purchase. Can this continue, or is there a potential housing market crash on the way in 2022?
Efforts to boost the housing supply through new construction also faltered as the industry experienced acute shortages. Steven Hensley, senior manager at Zonda, a housing market analysis platform, notes that the strained supply chain created material constraints that caused major sticker shock for would-be buyers of new homes.