Monday Market Update: The Latest California Housing Sentiment Index
The housing sentiment index may be dropping – but is there an upside too?
We are just about halfway through July and 2022 is turning out to be a pivotal year in the housing industry. Home price deceleration and rising interest rates are changing the game for many buyers and sellers. The latest
California Housing Sentiment Index (HSI) has dropped 4 points from last month, as shown in the infographic below.
While we do want to present the data, we do not want to incite fear. This is not 2008, and home prices are not plunging. What we are experiencing is a much needed, cyclical process of normalization in which home prices are rising more slowly and stabilizing in many areas.
While some buyers have been priced out of the market, many buyers are eager to buy before rates rise further so they can start building equity ASAP. Sellers who have owned their home 3+ years are still very likely to receive a great ROI – even if it is from 1-3 offers instead of 12-15. Finally, buyers may finally have a small amount of negotiating power and are often facing less competition.
This is your weekly reminder that the glass isn’t half full or half empty – but simply refreshingly present. The only changes in the market that matter - are those that matter to you. Depending on if you are moving up, purchasing a second home or downsizing, there are various strategies which can maximize the benefits of the current market. Focus on your situation and your goals – the rest is just noise.
Best wishes,
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
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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