3. prices
When I describe how pricing has been in California’s real estate market over the last couple of years, the scene I would picture is that you are on a roller coaster that has been going up, and up, and we have not gone down the drop yet. The hard truth is that prices are not expected to go down—not for the demand that we are still seeing.
For all those buyers that have been waiting on the sidelines for the market prices to drop for the last several years, they have missed out on the opportunity for some pretty sweet equity. Prices are expected to climb still in 2022 but at a much slower pace than we have been seeing. Experts expect somewhere about 5–7% for 2022. There is no expectation of prices coming down. The one thing that will play a major part in purchasing for buyers is interest rates. For a buyer who is rate conscious, they will really want to consider buying as early as they can in 2022. Your purchase price power will be impacted not only by the natural increase in the demand in the market but by the rate that you are able to lock in.
All in all, the 2022 California real estate market is expected to be another great year. Although there will be some changes compared to the years past, the overall will be good for both buyers and sellers. As always, you will want to be sure to consult with a local licensed professional about your specific market and keep California’s real estate laws in mind, but the market in 2022 will be a nice breath of fresh air for the industry.