What Is the Future of Northern California’s Real Estate Market?
Here’s where our Sacramento market seems to be heading in 2022.
Now that Christmas has passed, it’s a good time to reflect on what happened in 2021 and see what the future holds for 2022. That’s why today we want to take a look at the future of Northern California’s real estate market.
Hopefully, we can all agree that 2021 was a bit of an odd year. COVID-19 is still hanging around, but so is our crazy-hot real estate market. Supply remains low, and demand remains high. On top of that, interest rates stayed at historically low levels, so buyers could still afford great homes. Overall, the market was pretty great.
One of the biggest stories of 2021’s housing market was our crazy appreciation. If you owned a home at the beginning of 2021, your equity probably shot up like never before. In fact, Northern California saw its average home value increase by 22%. That means that if you owned a $500,000 home in January, it’s now worth $600,000.
So what does 2022 look like? The short answer is that no one knows for sure, but we can make an educated guess. It’s likely that interest rates will go up, and if this happens, homes will become less affordable. If you’re a buyer, don’t wait. Interest rates are likely to increase, and home prices are likely to appreciate. The sooner you get into the market, the more likely you are to get a great deal.
If you have any questions about today’s topic or anything else, please call or email us. We’d love to help you with buying, investing, contracting, or anything else you need. Happy New Year!