A look at whether rising home prices and interest rates will cool the housing market. The speaker analyzes recent data from May 2022 showing home sales have stayed strong despite the increases, offering an economic overview of what's happening in real estate right now.
Many are thinking with the recent increase in home prices and now interest rates it might start slowing down new home sales which then could in turn slow down the increase in home prices. The numbers really disagree. Let's dive into them. So the last decade, the 2010 decade from 2010 to 2020 there was on average about five and a half million new homes sold per year. Last year 2021 was a record year at 6.1 million everything showing that there's going to be around 6 million new homes sold this year 2022 which would be the second biggest year of all time and next year even with the house price increases and interest rate increases they're predicting another year right around last year about 6.1. So we're having a trio year here of just all time record high home sales interest rates are not slowing things down at all New home applications are still rising week after week and nothing showing that that is any end inside because there's a big need for houses and people don't mind paying.
