Get Ready for Gains in the 10-Year Housing Market Boom
[Editor’s note: “Get Ready for Gains in the 10-Year Housing Market Boom ” was previously published in December 2021 . It has since been updated to include the most relevant information available.] Until recently, the housing market was on fire . Source: Shutterstock In 2021, home prices in the U.S. rose by more than 10% year-over-year for 10 straight months. For context, over the past five years (2015-2020), annual home price appreciation rates have hovered right around 5%. The last time the housing market was that hot was back in 2004-2005. At that point in time, home prices had rattled off 27 straight months of over 10%-plus year-over-year growth. That was right before the housing bubble burst. In 2022, that housing market hot streak has cooled a bit. With runaway inflation, the Fed has embarked on an aggressive rate-hiking path. But home prices are still high. And these rate hikes are impacting affordability and pushing demand to the sidelines. And fearing a repeat of the previous crash, many pundits warn we are heading into a similar “bubble bursting” these days.
Get Ready for Gains in the 10-Year Housing Market Boom
[Editor’s note: “Get Ready for Gains in the 10-Year Housing Market Boom ” was previously published in December 2021 . It has since been updated to include the most relevant information available.] Until recently, the housing market was on fire . Source: Shutterstock In 2021, home prices in the U.S. rose by more than 10% year-over-year for 10 straight months. For context, over the past five years (2015-2020), annual home price appreciation rates have hovered right around 5%. The last time the housing market was that hot was back in 2004-2005. At that point in time, home prices had rattled off 27 straight months of over 10%-plus year-over-year growth. That was right before the housing bubble burst. In 2022, that housing market hot streak has cooled a bit. With runaway inflation, the Fed has embarked on an aggressive rate-hiking path. But home prices are still high. And these rate hikes are impacting affordability and pushing demand to the sidelines. And fearing a repeat of the previous crash, many pundits warn we are heading into a similar “bubble bursting” these days.