Time to Invest in the US Housing Market? (Modified by ChatGPT)
15 Mar 2023
In early March 2022, I authored an article titled Will US Housing Market Remain Hot in 2022?(Chinese Version)
in which I predicted that the housing supply in the US would remain tight throughout the year. This implies that, despite a modest slowdown compared to 2021, the market will continue to favor sellers and be characterized by high demand and low inventory.In retrospect, the US housing market went through a tumultuous period marked by a strong start, followed by plunging prices and shrinking transaction volumes. Despite this volatility, the housing market demonstrated its anti-inflationary nature, as tight housing supply since the subprime mortgage crisis supported the resilience of housing prices. This eventually led to a surge in housing prices once market liquidity was released in the first half of 2022. However, the Federal Reserve's dramatic rate hikes throughout the year increased borrowing costs and dampened housing prices. While the market showed signs of cooling down and transaction volumes remained sluggish, housing prices continued to rise, outpacing those in early 2022.