As we begin emerging from the surrealness of the last 24 months, many have been asking “where does the real estate market go from here?”. Rent amounts and home prices have soared, leaving some priced out of the market completely. The one bright spot is the continuation of historically low interest rates, but it is likely they will increase in 2022. How much will that affect the sales volume is anyone’s guess.
As stated in an article published on October 7, 2021, by California Association of Realtors, “Supply constraints and higher home prices will bring California home sales down slightly in 2022, but transactions will still post their second highest level in the past five years.” The question I’m asked most often is “when do you think we may see a correction?” It is my opinion that unless there is a major disruption in our economy, the robust market is not going anywhere in the near future.
Interest rates will rise, but not enough to significantly affect buying power. A lack of rentals will continue increasing rent amounts. I know that is bad news for many, but there is simply no indicators that I have seen to the contrary.
To sell, or not to sell is the question. If a persons goal is to retire outside California, it may be a great time to sell. To buy, or not to buy. If a persons goal is to remain in California long term, it is difficult to say there is ever a bad time to buy.
That is just one man’s opinion, but believe it or not, I have been wrong before. Only time will tell.