Today I will tell you about Real Estate California Prediction for 2022. In 2022 the C.A.R. (California Association of Realtors) predicts a cooling trend in the housing market, with existing single-family home sales decreasing and price increases slowing.

C.A.R. (California Association of Realtors) predicts that 416,800 present single-family homes will be sold in 2022, which is 5% less than the number projected in 2021.

The report, which was released, also predicts that the median home price in California state will rise by 5% in 2022, to $834,400. According to the trade group, this would be a welcome shift. It expects the statewide median price to increase by 20% this year to $793,100.

“A slight failure from the torrid sales pace in 2021 and a half will be a welcome release to homebuyers who have been dismissed of the market due to high market race and a very low level of homes available for sale”.

The statewide moderation would follow a trend that appears to be already underway in L.A.’s single-family market, where sales prices have recently fallen from record highs.

The C.A.R. report also predicted that housing demand in less expensive areas would continue to rise statewide as a result of remote working and that mortgage rates would rise slightly but remain relatively low.

The California Association of Realtors has released its 2022 California Housing Market Forecast

If the pandemic is controlled, the California housing market will remain strong, but structural challenges will persist.

  • Existing single-family home sales are predicted to total 416,800 units in 2022, a 5.2 % decrease from the projected pace of 439,800 in 2021.
  • The median home price in California is predicted to rise 5.2 % to $834,400 in 2022, following a 20.3 percent increase to $793,100 in 2021.
  • Housing affordability is expected to fall to 23% next year, from a projected 26% in 2021.

LOS ANGELES, according to a housing and economic forecast released today by the CALIFORNIA ASSOCIATION OF REALTORS, supply constraints and higher home prices will cause California home sales to fall a bit in 2022, but transactions will still be at their second-highest level in the last 5 years (C.A.R.).


In addition, the baseline set-up of C.A.R. (CALIFORNIA ASSOCIATION OF REALTORS) 2022 California Housing Market Forecast” predicts a 5.2 percent drop in existing single-family home sales next year to 416,800 units, down from 439,800 in 2021. Moreover, the figure for 2021 is 6.8 percent higher than the pace of 411,900 homes sold in 2020.

The median home price in California is expected to rise 5.2 percent to $834,400 in 2022, following a 20.3 percent increase to $793,100 in 2021 from $659,400 in 2020. A supply-demand inequality will continue to put rising pressure on prices, but higher interest rates and limited normalization of the sales mix will likely limit median price growth. Furthermore, as the trend of remote working continues, a shift in housing demand to more affordable areas will keep prices in check and prevent the statewide median price from rising too quickly in 2022. “Homeownership objectives remain high, and motivated buyers will have more options.” They will also benefit from a satisfactory lending environment, as the average 30-year fixed-rate mortgage will remain below 3.5 percent for the common of next year.”


C.A.R.’s 2022 forecast predicts 4.1 percent growth in the United States’ gross domestic product in 2022, following a 6.0 percent increase in 2021. With a nonfarm job growth rate of 4.6 percent in 2022, up from a projected increase of 2.0 percent in 2021, the state’s unemployment rate will fall to 5.8 percent in 2022, down from an expected rate of 7.8 percent in 2021.

Growing global economic concerns will keep 30-year fixed mortgage interest rates low in 2022, at 3.5 percent, up from 3.0 percent in 2021 and 3.1 percent in 2020, but still low by historical standards.

“Assuming the pandemic state is kept under control in 2022,” said C.A.R. “The cyclical effects of the current economic downturn will decrease, and a strong recovery will follow.” “However, structural challenges will reassert themselves as the market continues to normalize.” “As the economy improves, demand for homes will continue to outstrip available supply, resulting in higher home prices and slightly lower sales in 2022,” Levine added.


This and other California housing market forecasts indicate that a cooling trend in 2022 is possible. However, this does not imply that the market will shift from favoring sellers to favoring buyers.

In addition, the California real estate market is expected to “slow,” “moderate,” and “normalize” in the coming months. However, it is unlikely to become a classic buyer’s market anytime soon.

Despite a recent increase in new listings, the housing supply across the state remains inadequate to meet buyer demand. There aren’t enough homes on the market in comparison to the number of buyers looking for them. This type of imbalance, in addition to fueling competition, puts upward pressure on home prices.


Moreover, this imbalance could be reduced throughout the rest of 2021 and into 2022. However, a complete reversal appears highly unlikely.

In other words, despite the “cooling” and “normalizing” language found in many 2022 California housing market forecasts, real estate conditions will likely continue to favor sellers for the foreseeable future. It will take a lot to change that, including a significant increase in inventory.

Disclaimer: This report contains statistics, trends, and predictions provided by third parties unrelated to the publisher. The Home Buying Institute makes no predictions about the housing market’s future conditions. Real estate forecasts are the equivalent of an educated guess and thus far from certain.


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