And the adventure begins. 2022 promises to be an interesting moment in time for real estate sales throughout California. Real estate is local and that suggests that all the predictions you’ll hear about regarding the future for the real estate market in 2022 might not reflect what’s actually happening where you are, but hopefully, this post will give you some insights into what may be forthcoming.
The predictions included in this post are all “educated guesses” from reputable sources. No one has a crystal ball so we hope the information here is helpful while taking a pause to ponder all the possibilities.
Consensus forecasts put mortgage rates at about 3.7% by the end of next year. Still historically low, but much higher than what’s offered today.
“Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. With more than 45 million millennials within the prime first time buying ages of 26 to 35 heading into the new year we expect the market to remain competitive.” Danielle Hale, Chief Economist, realtor.com
“With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.” Lawrence Yun, Chief Economist National Association of Realtors
“We expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.” George Ratiu, Manager of Economic Research Realtor.com
“Stong demographic demand will continue to act as the wind in the housing market’s sails.” Mark Flemming, Chief Economist, First American
Hope is on the horizon for 2022. You should see options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams soon rather than later so you can buy while today’s affordability is still in your favor.
This is still a seller’s market and may remain so for much of the year as home prices are predicted to continue to climb but more so at a moderate rate. If you’re thinking of selling don’t wait too long since more listings are projected to become available. Your window of opportunity to stand out from the crowd won’t last forever.
If you are thinking of buying or selling in 2022 we’d love to discuss with you your goals and the potential opportunities you have in today’s Santa Barbara real estate market.
