The housing market has been extremely unpredictable in California over the past few years. Here are seven predictions for what will happen in the California housing market by 2022.
1. Home prices will continue to rise, but at a slower rate
The average price of a home in California has already increased by more than $100,000 since 2012, and this trend is likely to continue in the years ahead. While there may be some occasional dips or pauses in the rate of appreciation, it is safe to say that home prices in California will continue to go up overall.
2. The market for luxury homes will stay strong
The high-end of the housing market has been doing very well in recent years, and this is likely to continue in 2022. There will always be a demand for luxury homes, especially in desirable areas like Los Angeles or San Francisco.
3. First-time home buyers will face more challenges
The market is getting increasingly competitive for first-time buyers, as prices continue to rise and inventory remains low. In order to compete, these buyers will need to be prepared to make a serious investment.
4. More people will move to California
Despite the high cost of living, California remains a very desirable place to live. The population is projected to grow by another 2 million people by 2022, and this will put even more pressure on the housing market.
5. Rent prices will continue to increase
Renting has become increasingly expensive in California in recent years, and this trend is likely to continue. The average rent for an apartment in the state is now over $2,000 a month, and there is no sign of this number going down any time soon.
6. The market for affordable housing will become even more competitive
While the market for luxury homes continues to thrive, the market for affordable housing is becoming increasingly difficult. There is a growing demand for homes that are priced below $500,000, but the availability of such properties is becoming increasingly scarce.
7. The housing crisis will continue
Despite all of the predictions above, it is still possible that the California housing market will experience another major crisis in 2022. This could happen if inventory remains low, prices continue to rise, or the economy takes a turn for the worse.
Regardless of what happens in the California housing market in 2022, having a professional and experienced real estate team on your side will help you to navigate the challenges and opportunities that are sure to arise. Contact the team at Amanica today, or visit our website for more information!
Amanica is a full-service real estate and property management business that has been helping people in the real estate industry in California for over 15 years. With experienced agents and a wide range of services, we can help you accomplish your goals in the California housing market in 2022.