So what happened in the real estate market in 2021?
Prices went up over 11% in 2020 and the forecast was that values and prices would only increase by 6.8% but ACTUAL increase was 20.3% in 2021.
Hi I’m Karie Hall with Homes by Karie and eXp Realty.
About 67% of homes are closing above list price and going pending very very quickly, the average is about nine days, in the past it was seven days, so yes, the market is still very strong.
More homes were sold in 2021 than homes have been sold per year in the last seven years, we’re predicting to end the year selling somewhere between 440,000 thousand single-family homes.
We are selling more homes over $1 million in California than homes under $500,000. Also, we are selling more homes over $2 million in California than in history.
If you look at the 2021 fastest growing cities, 69% of sales prices are over $1 million, and 25% are over 2 million, all positive signs of the 2022 real estate market to continue to trend up.
The Bay area, Orange County and Los Angeles tend to be vacation areas and second homes, which is also conducive to a positive housing market.
Housing is growing fast in California’s core.
If you look at home sales growth by broad region, it’s the coastal and frankly the least affordable parts of California that are actually doing the best. The Bay Area is up 32.8%, central coast is at 26.6%, Southern California is at 23.2% whereas all of California as a whole is up 21.3%.
With the increase in demand for second homes or larger homes because of remote work we are predicting this to help the housing market as well.
35% of sellers actually left the state and less than 1/3 of sellers who sold stayed in the same county. More people are able to work remotely so moving away from California has never been easier. This will make it a bit easier for people to find homes who have decided to stay.
35% of buyers in 2021 were first time homebuyers and 32% of them put 20% or more down which shows they have more skin in the game then in the past. Only 2.7% put 0% and 4.4% paid all cash as a first-time home buyer.
So the housing market forecast for 2022 according to the California Association of Realtors looks good. I hope this overview of the housing market helped you, and a slight insight as to what may happen in 2022. I’m Karie Hall with Homes by Karie, and as I always say:
When you do what you Love people Love what you Do!