It’s safe to say that nothing about the last few years has been predictable, not least the California housing market. Despite being in the midst of the worst health pandemic in recent history, home prices and sales across California have remained strong. With demand high and properties being snapped up quickly, what does this mean for 2022?
With 2022 finally here, here’s what our experienced team expects the 2022 housing market to look like.
Experts believe that the surge in property prices experienced in 2021 is set to continue and that the median price of a California property could rise by around 5.3% next year. This would make the median home price in California approximately $834,400. Demand will be the main driver of this increase since supply is expected to remain low.
If you are in the market for a single-family property in California in 2022, you might find the competition for your dream home is fierce. The California Housing Market is forecasting a decline in the sales of existing single-family homes by as much as 5.2% next year. With demand likely to outstrip supply, we strongly recommend that you get yourself in the best position possible to have an offer accepted – getting a hefty down payment ready and your mortgage in principle in writing – to make you more attractive to sellers.
Demand for housing has outpaced the construction of new homes for years. However, the increased cost of materials could see the construction of new properties start to stall in 2022. If fewer homes are built, demand will continue to grow and push property prices higher.
The affordability gap could become a real problem for people hoping to get onto the property ladder for the very first time. Despite mortgage rates being low, increasing prices mean that lenders could start asking for larger down payments to secure a mortgage. And despite interest rates staying down, the overall price increase of homes will push up monthly repayments, making buying a home unaffordable to some.
The answer to this question really depends on the exact location where you want to buy and the property in question, but generally speaking, 2022 should remain a good time to purchase property in California. Mortgage rates are staying low and if you can obtain a long-term fixed-rate deal, it could save you money on a California property in the long run.
If you would like more advice on what to expect from the housing market in 2022, contact Altmann Ayala Realty Team in San Diego. Call 858-216-2700 to schedule an appointment today.