Current California home prices are hovering around $775,000, an 11% decrease over the same period last year. The California Association of Realtors predicted the following trends for 2022:
- Existing single-family home sales are forecast to total 416,800 units in 2022.
- California’s average home price will continue to rise by about 5%.
- Housing affordability may drop by 23%.
Let’s take a closer look at the predictions for October 2022 and review tips on how to proceed with your homeownership journey.
Supply Constraints Linger
A shortage of available homes continues to put upward pressure on prices. This can make it difficult for homebuyers to secure the funding to achieve their dream of homeownership.
Predictions for October 2022
Single-family homes are likely to rebound in conjunction with temporary rate cuts. August home sales were a beacon for hopeful home buyers and industry experts. Sales surpassed 300,000, offering hope for a strong 2022 finish. Unfortunately, with rising inflation, the Fed is expected to continue increasing rates. This could lead to additional competition for low inventories as buyers rush to lock in rates before they grow. California home prices hit a record high in the year’s second quarter. However, only 16% of households could afford the medium cost that exceeded $883,000. With the ever-changing environment of home inventories and interest rates, you may wonder how to proceed with your homeownership plans. Here are a few tips to help you move forward.
Tips for Homebuyers in California
As the first step, finding a real estate agent knowledgeable of the current market is essential. You may want to search for homes on the internet. However, this information often needs to be updated. With the help of a real estate agent, you can find active listings and gain valuable insight into how to place an offer and obtain a mortgage. Look out for short sales and foreclosures if you’re looking for a great deal and are quick to buy. There are risks associated with making an offer on these homes. Therefore, you also need a backup plan if you don’t get the house. Do you want to stand out from other home buyers to increase your chance of getting a home? Getting a pre-approval shows sellers that you are serious about buying. It also shows how much buying power you have. Please rely on the professionals around you since they do this for a living. Your mortgage lender and real estate agent are invaluable resources for finding both a home suited to your needs and the money to pay for it.
Potempa Difference
The Potempa Team can help you understand the ins and outs of changing trends. The housing market in California is likely to remain volatile as it is in the rest of the country. However, you’ll be able to find a home within your budget with the proper assistance. Contact us today to schedule an appointment with a loan officer and begin your journey with a pre-approval.
