Continuing our look at the California housing market for 2022 we have a top contender for most expensive market in California along with two more affordable areas to keep an eye on as the market cools off and becomes more buyer-friendly. There’s no denying the appeal of California is universal as the state has something for everyone.
Whether it’s the beautiful state and national parks or the allure of Hollywood’s lights and action, the reason for the high demand in California isn’t going away any time soon. Let’s take a look at one of the most popular destinations first.
2022 Housing Market for San Francisco
San Francisco’s housing market has seen less of a median sale price increase compared to other areas of California but listings still carry some of the highest price tags in the country. As of February 2022, the median sale price for a home in San Francisco was $1,495,000 which is a much more moderate increase of 10% compared to markets like San Diego. One key factor that San Francisco has more of than other markets is a migration of remote office workers leaving the city which opens up opportunities for new families seeking the downtown experience.
Another boon for San Francisco’s housing market is that their supply hasn’t been impacted as much as the rest of the state. With just over two months worth of inventory available, San Francisco still boasts an increase in sales year-over-year as of February 2022 with a 0.2% increase. While this may seem small, neither Los Angeles or San Diego saw an increase and instead both had dips in sales volume.
2022 Housing Market for Fresno
Fresno has quickly become one of California’s preferred cities to purchase a home in as it provides access to what the state is known for without the hefty price tag associated with areas such as San Francisco and San Diego. Even with an 18.5% increase from February 2021 to February 2022, Fresno’s median sale price still comes in at an affordable $361,000.According to Redfin, these prices are likely to continue rising.
Boasting lower prices has made Fresno a recent interest for both remote workers and families looking to spend less on their housing without totally losing the area they’ve settled down on. This has led to a nearly 11% increase in sales despite a slim inventory of around 375 homes as of February 2022.
2022 Housing Market for Sacramento
Sacramento has proven to be the exception when it comes to California housing market trends. While most markets struggle to maintain inventory, Sacramento only lost around 16% of houses year-over-year in February 2022. This takes the total from 490 homes to 413 but an increase in new listings hopes to change the tide.
Having a low inventory is nothing new for Sacramento and the city has been able to keep up with demand and achieve a median sale price of $485,000 in February 2022, up 15% year-over-year. Affordability such as this in California draws a lot of attention but new construction is starting to pick up to accommodate the changes.
Are you looking to the Golden State in 2022? If so, we encourage you to reach out to the Potempa Team with any questions you have about what steps to take. With experience in local California markets, our team has the insights needed to secure the right mortgage for your next purchase. Don’t go into the market unprepared, reach out to the Potempa Team today.