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Housing Market Trends: 2022 Predictions

Housing Market Trends: 2022 Predictions

by | Dec 22, 2021 | Uncategorized

As supply declines in the housing market, it is expected that property prices will increase resulting in the slow down of sales in 2022. Transactions will still be at the second highest level in the past five years. The 2022 California median home price is forecast to increase by 5.2 percent to $834,400, compared to the 2021 median home price of $793,100. Home sales are expected to decline to 416,800 units from the 2021 sales figure of 439,800.   Low supply will put upward pressure on prices, but higher interest rates will likely suppress median price growth. Demand for housing in more affordable areas will increase as remote working continues to popularize, preventing the California median home price from rising too quickly.   “A slight decline next year from the torrid sales pace of the past year-and-a-half will be a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale,” said C.A.R. President Dave Walsh. “Motivated buyers will have more inventory to choose from. They will also benefit from a favorable lending environment, with the average 30-year fixed rate mortgage remaining below 3.5 percent for most of next year.”   What Experts are Saying “Home sales will notch lower by 2% in 2022, principally because of higher mortgage rates. Home sales will not crash thanks to job gains, investor demand and the work-from-home reshuffle in residential location choice.” – Lawrence Yun, Chief Economist, N.A.R.   “Demand will continue to be driven by low mortgage rates and demographics. Consider that the largest...

Market Report for Altadena and Pasadena | December 20

by | Dec 20, 2021 | Market

Here is a Market Report for Altadena and Pasadena for the week of 12/20. Altadena This week the median list price for Altadena, CA 91001 is $1,312,499 with the market action index hovering around 69. This is less than last month’s market action index of 75. Inventory has decreased to 28. Market conditions have been consistently cooling in the past several weeks. Because we’re still in the Seller’s zone, prices have not yet begun to drop. It may take a few more weeks of slack demand for prices to reflect and begin to fall. Expect prices to fall if the index persistently falls to the Buyer’s zone. Click here for a detailed report. Pasadena This week the median list price for Pasadena, CA 91101 is $1,190,000 with the market action index hovering around 38. This is about the same as last month’s market action index of 38. Inventory has held steady at or around 2. The market has been strong for several consecutive weeks. Reflecting these inventory conditions, with the MAI in the Seller’s zone, it is not surprising that prices have recently resumed their climb. Click here for a detailed...

Market Report for Altadena and Pasadena | December 13

by | Dec 13, 2021 | Market

Here is a Market Report for Altadena and Pasadena for the week of 12/13. Altadena This week the median list price for Altadena, CA 91001 is $1,250,000 with the market action index hovering around 69. This is less than last month’s market action index of 71. Inventory has increased to 35. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in MAI, we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices. Click here for a detailed report. Pasadena This week the median list price for Pasadena, CA 91101 is $1,190,000 with the market action index hovering around 49. This is an increase over last month’s market action index of 28. Inventory has held steady at or around 2. In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb. Click here for a detailed...

Market Report for Altadena and Pasadena | December 6

by | Dec 6, 2021 | Market

Here is a Market Report for Altadena and Pasadena for the week of 12/06. Altadena This week the median list price for Altadena, CA 91001 is $1,298,000 with the market action index hovering around 73. This is about the same as last month’s market action index of 73. Inventory has decreased to 25. The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in MAI, we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices. Click here for a detailed report. Pasadena This week the median list price for Pasadena, CA is $1,543,944 with the market action index hovering around 60. This is an increase over last month’s market action index of 59. Inventory has decreased to 80. The market has been cooling off a bit in recent weeks, as more homes are available and demand is less. We’ll be looking for a persistent downward trend. If we see a persistent trend, especially if the MAI falls from the Seller’s Market zone to the Buyer’s Market zone, expect downward pressure on prices. There is already some evidence prices moving lower.. Click here for a detailed...