Here’s what I think our 2022 housing market might look like.

How did the 2021 housing market wrap up? Where are we headed in 2022? We all know that the 2021 Bay Area housing market was red-hot. It all came down to low inventory, low interest rates, and high demand from buyers. We saw prices increase by 20% in Alameda County from January to October, and the median sales price ended at almost $1.3 million. 

As we enter 2022, some experts predict that we’re in a bubble and due for a correction. On the other end, experts predict that we’ll continue to see prices skyrocket. My best sense is that we’ll see something in between.

We have a strong economy in the Bay Area, so a lot of people are looking to buy. We also have low inventory, and it doesn’t look like that will change anytime soon. There are some wildcards, one of them being inflation. 

“My best sense is that we’ll see something in between skyrocketing prices and a market correction.”

Inflation is at a 31-year high, but the impact of this depends on how the situation unfolds. In addition, we are seeing interest rates increase gradually. They’ve recently broken 3%, and the Fed has talked about increasing them more as we move into 2022. 

Generally speaking, real estate will serve as a hedge against inflation. My question to you is: What is your situation? Is this the right time to buy or sell for you?

If you have questions about what I expect in 2022 or any other real estate topic, feel free to call or email me. I would love to hear from you.