The COVID-19 pandemic has certainly had an impact on the California housing market over the past two years.
With the Omicron variant on the rise, what’s going to change? Will the housing market in California crash?
If these questions have been on your mind, we have created this for you. Below, we’ll tell you all about our predictions for the California housing market in 2022.
Demand will likely outpace supply in the California housing market in 2022. This is, in part, due to the increased commonality of work-from-home jobs as we continue to fight against the COVID-19 pandemic.
Greater demand means that the median home price will rise slightly higher than it was in 2021.
This projection is based on the price increase we saw between 2020 and 2021. We estimate about a 5% increase in average housing prices in 2022.
Due to the rising prices of single-family homes, these home sales are likely to decrease in California in 2022. It might be harder than usual to sell your home at a profit this year.
There are several things you can do to combat this if you are planning on selling your home in the upcoming year. Consider home improvements and renovations that can add value to your home at a low cost, such as repainting, adding solar panels, or doing some small renovations.
Since the COVID-19 pandemic began, demand for housing in affordable areas has been at an all-time high.
Many people lost their jobs or had to change professions due to the pandemic, but that doesn’t mean they aren’t looking for new homes to rent or buy.
This surge in demand is likely to help keep housing prices in check. Despite the fact that the average single-family home will get more expensive, you may still have more options in less expensive areas as a buyer.
2022 is likely to see a small increase in 30-year, fixed mortgage interest rates. The average mortgage interest rate in 2022 will be around 3.5%.
That’s 0.5% higher than it was in 2021, but you don’t have to worry about that too much as 3.5% is still historically low.
Worldwide economic concerns are likely to keep the average 30-year mortgage interest rates low in most places, at least until the post-pandemic world looks a little more certain.
We hope you’ve found these 2022 housing market predictions helpful. Keep these trends in mind as you navigate the housing market in California, and you’re sure to find success.
As you make your way through the housing market in 2022, you may find that you need the help of a real estate lawyer. Contact us at Estavillo Law with any and all of your questions.