Are you planning to buy a house in California? The house prices in the United States have been growing fast, especially since June 2020. The experts say that this trend will continue at least until 2022. The State of California has always been one of the hottest real estate markets in the United States. But lately, the Golden State house prices have been soaring. Let’s see California house prices predictions for 2022.
Current California house prices
California’s real estate market is booming. Demand for houses is very high in the California housing market. It was exceptionally high even before the Covid-19 pandemic. Consequently, house prices have increased a lot. However, the houses in California typically remain available on the market for about seven days only. They are usually sold at a much higher price than listed.
The housing market is currently one of the strongest sectors of the economy in the United States. Demand for new homes increased by 4.3% in January 2021. That occurred despite the rise in house prices. The demand for new homes has increased 19.5% compared to the previous year. Many people are now looking for properties outside of large American cities. That has been a strong trend since June 2020. House buyers are mostly looking for individual houses with their own backyards. Ever since the Covid-19 pandemic started, people are looking for safer, less congested places to live. Many of them are moving from urban high-rise apartments to suburban houses.
These soaring home prices could be an obstacle for first-home buyers. Despite various facilities for the first-home buyers offered by the U.S. banks, this increase in house prices makes things difficult if you want to purchase your first house.
Once you find the perfect Californian home, you may need help with your household relocation. All your items and furniture in your living room, dining room, and bedrooms will have to be properly packed and transported. Even your pets, plants, electric appliances, or a car will have to be safely transferred to a new home. Your household items should be loaded and unloaded by a trained crew. They will also disassemble and assemble your beds, tables, and other furniture and pack them properly. Moving may be complicated, but experts can simplify the process for you.
Housing supply remains low
The laws of supply and demand exist in all markets. Such is the case in the real estate market. These high prices are primarily caused by low supply. The shortage of properties on offer and the increase in demand has caused a significant rise in real estate prices. The demand on the California house market is so high that it is hard even for investors and construction companies to keep pace. For example, in Southern California, there are about 30 percent fewer homes on the market in 2021 than in the previous year. A similar thing occurred throughout the whole country.
Higher house demand also occurred due to lower mortgage interest rates. That also relieved fears of the possible recession that was present. As a result, people feel less reluctant to purchase a new house now. However, many homeowners are unwilling to offer their houses on the market yet.
California house prices by counties
Sales in California are constantly increasing. Compared to the last year, there has been an increase in house sales and prices in all of California. Here is what it looks like by the counties according to the statistics:
- San Diego County: sales have grown 23%. Average house price has grown 8% to $ 590,000.
- Orange County: sales have increased 20%. Average house price has grown 7% to $ 750,000.
- Los Angeles County: sales have grown 15%. The average house price has grown 6% to $ 615,000.
- San Bernardino County: sales have increased by 16%. Average house price has increased 12% to $ 360,000.
- Riverside County: Sales have grown 18%. The average house price has increased 4% to $ 390,000.
- Ventura County: Sales have increased by 18%. The average house price has grown 3% to $ 589,000.
California house prices predictions for 2022
Most economists expect house prices to continue rising. They predict further growth at least until the beginning of 2022. However, the future growth of the California real estate market will be clearer in the next few months. Due to low-interest rates and the shortage of houses in the real estate market, house prices will continue to rise to a certain level. But a fast-growing house demand trend that began in 2020 does not show any signs that it will end any time soon. So if you get a chance to buy a house in California, you really shouldn’t miss it. Professional and trustworthy local movers at jbmoving.com are ready to help you to settle in.
California’s tough housing market
San Diego is one of California’s counties with the highest house price growth. In this county occurred a similar situation that happened across the United States. Employees with high salaries had the possibility to work from home during the pandemic. They actually increased their wealth during that time. However, even for people with such purchasing power, there are fewer offers on the housing market than in previous years.
According to real estate agents in California, some of the house sellers prefer to wait until the Covid-19 pandemic is over. They plan to put their homes on the market afterward. Additionally, some house owners didn’t want to move during the pandemic. Some of them didn’t want to be at risk from potential buyers who would visit their houses during the pandemic. That is why 3D virtual tours became so popular in real estate. Therefore it can be expected that once the offer on the housing market goes up, the house prices will decrease.
For that reason, house biddings are so common in California. So be ready to fight for the house of your dreams. Also, be prepared to offer more money for a house than it was initially listed for.
It is also expected that the construction industry will grow once the pandemic crisis is over. The bigger offer of new houses on the market, the less expensive houses are expected to be.