Monday Market Update: The CAR® 2022 California Housing Market Forecast
'Tis the season for projecting what 2022 will bring... in housing & beyond!
We have said it before, and we will say it again – there are no crystal balls in real estate but there are data-based projections to guide your short- and long-term goals. This is the time of year when analysts forecast what real estate could look like in 2022, and we will be sharing some of the key themes as the year draws to a close.
We encourage you to use this data to educate and empower yourself, to keep an open mind and a firm pulse on the market. However, more important than what the market is doing is how your current home is meeting your lifestyle and financial goals; please let that be the lead actor and let this data play a supporting role.
2022 California Housing Market Forecast
Highlights:
● Existing, single-family home sales are forecast to total 416,800 units in 2022, a decline of 5.2 percent from 2021’s projected pace of 439,800.
● California’s median home price is forecast to rise 5.2 percent to $834,400 in 2022, following a projected 20.3 percent increase to $793,100 in 2021.
● Housing affordability is expected to drop to 23 percent next year from a projected 26 percent in 2021.
● The forecast projects growth in the U.S. gross domestic product of 4.1 percent in 2022, after a projected gain of 6.0 percent in 2021.
● Growing global economic concerns will keep the average for 30-year, fixed mortgage interest rates low at 3.5 percent in 2022, up from 3.0 percent in 2021 and from 3.1 percent in 2020 but will still remain low by historical standards.
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All my best,
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/
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