Halloween has passed and it is on to Thanksgiving, Christmas, & the tinsel!
The Christmas decorations might already be for sale at Costco and likewise in the real estate world, economists are looking a couple months ahead.
2022 California Real Estate Market Forecast
- The California median home price is forecast to rise to $834,400, constituting a 5.2 percent increase from 2021
- Mortgage interest rates for a 30 year fixed rate mortgage are predicted to rise to 3.5 percent
- Structural challenges will persist as available supply is low and demand is high
- Total number of single family home resales is predicted to go down 5.2 percent to 416,800 units
The experts at the state level are not expecting the bottoming out of the market that some click bait articles suggest. The past six months have seen article headlines about a housing bubble, a foreclosure wave beginning, or the devastating effects of the mortgage forbearance programs that started during the coronavirus pandemic. Leaders of CAR have less doomsday predictions.
President of CAR Dave Walsh said, ““A slight decline next year from the torrid sales pace of the past year-and-a-half will be a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale…Homeownership aspirations remain strong and motivated buyers will have more inventory to choose from. They will also benefit from a favorable lending environment, with the average 30-year fixed rate mortgage remaining below 3.5 percent for most of next year.”
These predictions indicate more conservative changes to the general housing climate, not a dramatic shift. Many economists have commented that the white hot real estate market will cool to a still competitive, but just red hot market.
Our Predictions for 2022
Regardless of how close the actual numbers come to the prediction, here are a few of our personal predictions at KALEO Real Estate Company:
4. That we continue to learn and love this real estate business!