Wealthy Living

JP Morgan US Housing Market Report: Where is the Market Headed?

Members of Generation Z might struggle to remember a time the US housing market prices were doing anything other than rising exponentially.

The financial crisis of 2007 was one of them. Some people are wondering if the US housing market is going through something similar now — but is it a fair comparison?

The US Housing Market Throughout History

House prices in the US rose 17.1% between December 2020 and December 2021. It’s a terrifying figure for anyone currently saving for a house, and it’s also a rate that far surpassed inflation.

With increases in average wages way behind, it’s no wonder that many people have concerns about the growing affordability crisis.

JP Morgan: Could 2022 be the Next 2008?

Look no further to see suggestions that 2022 could be the beginning of the next big financial crisis. The stock market isn’t holding up well, with the S&P seemingly falling further every day.

We need to look at the current state of a few other risk factors; J.P Morgan focused on debt levels and supply.

Debt Growth

Although prices are increasing quickly, debt growth isn’t taking place at quite the same rate as we saw between 2003 and 2006.

During the recovery period after the 2007 crisis, most households have been paying off their debt, meaning they were in relatively good financial situations when the pandemic came around.

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