2022 Real Estate Market Predictions
Happy Holidays to everyone! It’s that time of year again when I share my thoughts on real estate market predictions for the new year. It definitely has been a time like none other in the real estate market. Homes in San Diego County are still selling at high prices, many over asking price and over market value, and many with multiple offers. There are a plethora of cash buyers out there and competition is fierce.
Here is some of what we may see come the new year:
1. Housing prices. We will likely continue to see housing prices hold steady and even escalate as well in many areas as we head into the new year. This is due mostly to 2 things: lack of supply and low interest rates (see below). If we suddenly see a surge in supply combined with rates inching up, there is a chance we may finally start to move into a buyer’s market, but for now – and I believe for at least the first half of 2022 – we will see more of the same.
2. Inflation/interest rates. The Feds were standing by their notion that inflation was temporary, but as of this week they are now changing their tune and saying that it is not likely a temporary situation. This could effect the housing market with mortgage rate increases. The Feds have indicated that there will be at least one rate increase in 2022, and many people in the know feel there may be a few. There is a chance this could stimulate potential sellers to list their homes while the market is strongly in their favor, but with a Catch-22 scenario putting them in a tricky situation when they have to turn around and purchase another property, there is no telling what could happen.
3. Housing inventory. We will likely still see low inventory, at least at the start of the year, and perhaps with a slight increase due to the potential of rising interest rates. Hopefully inventory will not be as low as in 2021.
The housing market as always is hard to predict, but it seems even more so during these uncertain times. If you need more information on a specific market in the San Diego County area, or need real estate advice, please feel free to reach out to me at 760-310-9466 or Rachel@LaMarRealEstate.org.
Happy New Year!
