Published by Kartik Subramaniam
The California housing market stayed blazing hot through 2021, leaving many potential home buyers waiting in the wings. If you were one of them, you might be wondering if the home prices will continue to rise through 2022. On top of that, you’re undoubtedly interested in how much the market might cool off, so you can finally make your big move. To figure all that out, you just have to take a peek at this guide to learn all you need to know about the housing market conditions in California.
All across California, the already expensive housing market got even pricier as 2021 dragged on. The biggest jumps in home prices occurred in the suburbs outside Sacramento, Riverside, and other urban centers. Inside the city centers, property prices continued to rise as well, although not quite as fast as the suburbs.
Overall, single-family home prices rose by over 12 percent, landing their price tags in the $800,000 range by year’s end. Although that’s double the median sales price for homes across the nation, certain areas of California have even higher typical home prices. In San Francisco, for example, homes sit at $1.5 million on average, while the Montecito homes often have a $6.5 million asking price.
The price hikes naturally result from low housing inventory and high demand, which is not likely to change too much in 2022. Despite that, California Association of Realtors project that the cost of homes across the state will increase by a rather moderate 5.2 percent. Their housing and economic forecast points to the economic recovery, remote workforce, and overall supply/demand status as the factors driving the continued price increases.
Despite prices continuing to trend upwards, a jump of 5.2 percent is less than half of the increase seen in 2021. In fact, the single digital percentages haven’t been seen since the mid-2010s when a 5.7 percent value increase was the norm. Median home prices will hover around the $834,000 range as a result,making it not that much more expensive to buy in through early 2022.
In the end, it seems like 2022 will likely serve as a great time to buy a home in California. The earlier, the better, however. As people catch wind of the relatively favorable marketing conditions, their renewed interest could decrease the housing supply and drive up prices.
If you have the means and truly want to buy a home in California, consider getting all your ducks in a row and taking the plunge. Prices will likely continue to march ever upward, after all, as California continues to attract people from far and wide. So, you could miss out on your chance if you wait too long to make your move.
Not sure if it’s smart to start looking for a home to buy? Just speak with a local real estate agent to explore your options. They’ll let you know what to expect from the housing market in the coming months and years. On top of that, they’ll help you make sure you’re ready to move forward on your home buying journey.
Are you ready to get your real estate license?