2022 Market Outlook
Is the Real Estate Market Going to Crash? 2022 Outlook
The median existing-home price in November 2021 was $353,900, up 13.9% from November 2020 ($310,800), according to The National Association of REALTORS , representing 117 straight months of year-over-year price increases - the longest run of housing price increases on record. Are we in a housing bubble that’s going to burst? To answer that question, we need to compare what’s happening now with the greatest housing crash in history.
Before the Tax Relief Act of 1997, it was harder to buy and sell a home because any capital gains had to be reinvested in a home or they were taxed. But the 1997 Act made it possible for a homebuyer to purchase a home, occupy it for as little as two years (out of five years of ownership as the principal residence,) then sell it – excluding up to $500,000 in capital gains for married couples and $250,000 for singles.
Instead of staying in a home...