(The Center Square) – Research shows some people are putting their houses on the market because they think a housing bubble is on the way.
According to Clever Real Estate, 45% of home sellers believe the market is at risk of crashing in 2022.
Researcher Matt Brannon said the fear is causing some homeowners to alter their plans.
“About a third of those said they are moving up their plans,” Brannon said. “That makes sense from their perspective because if they think there is going to be a housing bubble then they want to get in before it pops while prices are still high.”
As the market has progressively heated to a boiling point, most real estate experts agree that the housing market isn’t nearing a bubble. Lenders were no longer making bad mortgages that could trigger another foreclosure crisis like in 2008.
But how can the system handle skyrocketing home prices, rising mortgage rates, property taxes and rental prices at the same time? Some believe it can’t.
“We’re not in a housing bubble just yet, but we’re skating close to one if prices continue rising at the current pace,” said George Ratiu, manager of economic research at Realtor.com. “Some markets will see a correction if mortgage rates continue to rise, in which sales will drop and prices will follow.”
In Illinois, homes across the state sold quicker in March than they did in March of last year as median prices continued to rise and interest rates inched higher. Property taxes in some areas also are likely to spike.
According to Illinois Realtors, statewide home sales were down 9.2% in March compared to February.
Home prices are actually coming down in some areas of the country, including Chicago. Realtor.com reports the Windy City is 9th in the country for locations where home prices are falling the most. The top three cities are Toledo, Ohio, Rochester, New York, and Detroit, Michigan.