Marina Times – Real estate in San Francisco in 2022
In short, next year will likely look a lot like 2021 when it comes to real estate in San Francisco. Fun for sellers and not great fun for buyers, especially if you are looking to buy a single family home. While for the most part it’s been the same story for years, there are a few new wrinkles to note.
Zillow suggests that for the nation as a whole, the housing market may not reach the incredible highs of 2021, but it will be anything but slow next year. Expect the strong seller market to persist, the Sun Belt to maintain its top spot as the most demanded region, and flexible work options to continue to shape housing decisions in new ways over the course of this year. the year to come.
Zillow’s forecast calls for home value growth of 11% in 2022. This is down from the 19.5% forecast in 2021, a record pace of year-end home value appreciation. but he would still rank among the strongest years Zillow has followed. Existing home sales are expected to total 6.35 million, up from around 6.12 million in 2021. This would be the highest number of home sales since 2006.
The same report includes some interesting observations that will no doubt apply to San Franciscans.
Americans are taking advantage of the flexibility of remote working to move to larger homes in more affordable markets, but many won’t want to commit full-time to a new location. This is often the case with young people who are drawn to the conveniences of city life, where expensive housing is more likely to put home ownership out of reach.
With these factors in play, there may be more people who buy what is traditionally a second home – either a part-time vacation home or an investment property – before purchasing a home as their primary residence.
Buying a second home in a more affordable market than the one they live in is a way for these buyers to start building equity while mortgage rates are low. Additionally, they might choose to team up with friends or family to reduce the financial burden.
For homeowners who would once have been inclined to buy a larger home, an ultra-competitive housing market could discourage such a move. Many homeowners will instead choose to simply modernize their existing home. A Zillow survey of homeowners found that nearly three-quarters would consider at least one home improvement project in the next year.
For many years, San Francisco has been the fastest growing real estate market in the country. But now, because houses in the city are so expensive, that is no longer the case. Instead, other markets are heating up. Especially smaller markets, where houses are considerably cheaper. By 2022, Realtor.com expects the country’s five hottest markets to be Salt Lake City, Utah; Boise, Idaho; Spokane, Washington; Indianapolis, Indiana; and Columbus, Ohio.
This may provide little solace to San Francisco buyers who will always face stiff competition when trying to buy a home. And they won’t just be competing with other individuals. the San Francisco Business Hours reported in late November that investors bought $ 2.3 billion worth of homes in San Francisco in the third quarter of 2021.
That’s 815 homes and accounted for about 20 percent of sales. Many of the nation’s major metropolises have seen investor activity more than double in their housing markets over the past year. San Francisco ranked 30th out of 40 metropolitan areas surveyed. In the city, the number of homes purchased by investors increased by 27.1% compared to the third quarter of 2020.
At this stage, according to the Business hours, there is no indication that investor activity will slow down.
STILL SOMEWHAT HOT
In November, the median price of a single-family home in San Francisco was $ 1.9 million, up 17.1% from November 2020. The median price of a condo in the same month was $ 1.29 million, up 7.9% from the previous year.
Obviously, there is a great demand for homes in the city as the properties continue to sell faster and faster. Single-family homes were on the market in November for a median of just 13 days, down 31.6% from the previous year. Condos were on the market for 24 days, down 40% from 2020.
In addition, 79.5% of single-family homes sold above their list price and 56.7% of condos sold above their list price, up 29.3% and 75% respectively from the previous year. same month in 2020.
There is a lot of uncertainty as the New Year dawns. Will the Covid really disappear one day? Who will win the 2022 midterm elections? How will California deal with its water shortages and wildfires? What about the stock market?
Even in the face of all of this uncertainty, it seems clear that demand for homes in San Francisco is likely to remain strong, house prices will continue to climb, and buyers, despite all the challenges, will somehow find a way to buy a home they want.
Comments: [email protected]