2022 Real Estate Market Forecast for California (Part 2)
When predicting what will happen in the future, you need to look at what is happening overall in the world. Hi, I’m Tanja Odzak with Our East Bay Home Broker by eXp Realty. We are seeing more jobs come in. People are spending money like crazy and life events that have been held off like moving or getting married and having babies are forecasted to increase. So, how is housing going to affair? 2.7 million people lost their jobs back in 2020 at the peak of the pandemic and as of recently, there still are over a million people who have lost their jobs or who have not gotten their jobs back. Keeping this into perspective, there are about 40 million people in California. How is California recovering so fast and seeing such appreciation?
Looking at the graphs, the stats that are in red are one of the lowest paying professions and you see leisure and hospitality were hit the hardest at just under 1 million. Followed by retail trade and other services in the admin support. But in green are the higher income earners. And there are a lot less jobs that were lost that were higher income earners. Most of the lower paid jobs were not in a position to buy homes anyway.
Also interest rates come into play when predicting whether prices will go up or down. Rates are historically low averaging from 2.65% to 3.08% at the end of October of 2021. Historically, we’re at one of the lowest interest rates of all time. Even if rates go up, they will still be relatively low. Oh, have the fifth lowest level of home loan owner vacancy rates in the nation. The third lowest rental vacancy rate in the nation. All time low levels of housing inventory in December and $830,000 record setting median price in August of 2021. Second worst state for overcrowded housing. Second worst state for percent of rent burden households. Second worst state for overcrowded housing. Dead last for supplemental poverty estimates.
So the housing market forecast for 2022 according to Association of Realtors looks good.
If you have any questions or you want to reach out to me for another area or city or neighborhood, feel free. I am here to help.
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
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