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Real Estate Market Predictions For 2022

2021 saw home values soar to historic proportions, and while I don't predict 2022 will have quite the same dizzying effect, we are still very much in a sellers market and prices are continuing to trend up.

First let's look back at 2021. According to the L.A. Times, Southern California home prices were up in November 2021 by 16% from the previous year- even as California experienced the first year of population decline. I'm sure we all know someone who has moved out of state this past year. Many home buyers have been eager to take advantage of the low interest rates 2021 offered but with a decline in inventory it became a typical case of supply and demand and prices skyrocketed. Anyone who has been in the market for a home in 2021 has experienced the multiple offers and immense competition.

What can we expect for 2022? Interest rates have risen from a hot 2.67% in January of 2021 to the mid 3% range. Still historically low but there are signs that it will continue upward in 2022 with some experts predicting we will be at 4% by the end of the year.

The California Association of Realtors put out their 2022 Housing Forecast which shows they forecast the prices to continue to rise but not at the same frenzied rate as 2021.

My predictions as we head into spring: we will continue to see prices increase- albeit at a slower pace and we will see more inventory as is typically expected during this time of year. Homes that are priced right will sell with multiple offers within the first 1-2 weeks.

For those looking to buy in 2022, my predictions are interest rates will continue to rise. Historically, spring sees the most inventory and price jumps, as more people are looking for new homes at this time of year. We are also seeing a lot of buyer's trying to get into a home before interest rates go up, which is further keeping the market highly competitive.

- Jessica Carter

"Your Fountainwood neighbor and local specialist"

For the latest listings in our area, visit my website

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