Mid Year Market Update

I attended a Midyear Real Estate Market update last week presented by Brian Buffini with Dr. Lawrence Yun – Chief Economist and Senior Vice President of Research at the National Association of Realtors presenting statistics.

He was presenting about the current market and predictions for the remainder of 2022.  (He has a pretty “right-on’ track record.)

I didn’t hear anything ‘THAT’ revealing that I knew already by staying up to date with the market.

He spoke more of the economics affecting Real Estate nationally, but the information pertains even more for the Silicon Valley and San Diego markets where I focus.

A few of the items worth noting were:

Inventory is down as compared to last year and demand for homes is still strong.

The number of sales are expected to decrease as compared to last year, but prices are expected to continue to increase. Multiple offers are expected for properties but not at the multitude we’ve seen recently.

The Fed has raised the rate this year with the most recent increase of ¾ of a percent.  The Fed rate affects mortgage rates which are expected to increase until they stabilize around 6 – 10%.

If inflation continues as it has, then mortgage rates may go even higher.

With the current increase in mortgage rates, the average cost of a mortgage is almost up to 50% higher than it was before the recent rate hikes.  Some buyers have been priced out of the market while the remainder can purchase ‘less house’ than they could a few months ago for the same money.

Home price appreciation across the US in 2022 is expected to be + 7% and in 2023 + 4%.

(Appreciation in Silicon Valley and the San Diego region is much higher and expected to remain higher than the US rate.)

Work from home is still affecting prices.  Buyers are now buying differently in ‘what’ they want and ‘where’ they want to buy now that they can work remotely part or fulltime.  Homes with an additional room to be used as an office are much more desirable than in the past.

Bottom line …. The suggestion was that NOW is the time to buy.  The longer you wait the less you can buy and the more you’ll pay.

For further information or a copy of the graphic that was shared, please reach out to me.