Real Estate Market PREDICTION for San Francisco in 2022
– video made by the YouTube channel with the logo in the video’s upper left hand corner. OaklandNewsNow.com is the original blog post for this type of video-blog content.
In this video, I will you give you my predictions for the real estate market in San Francisco going into 2022. As a real estate agent with boots on the ground, I see what is happening in my local market and want to share my conclusions with you!
2021 was an INSANE year for Real Estate across the United States. We saw the largest year over year increase (16%) for the median priced home in the US, but some markets did better than others. Despite the massively overblown San Francisco exodus that many of you may have seen in the news, The City still managed to see a jump up in property values with Single Family Homes increasing 13% and Condos 6.4%.
Below, I’ll share with you my prediction for the real estate market in San Francisco going into 2022, along with four reasons why I think it will continue to rise, though not at the same rate we saw last year.
Reason #1 SF Millennials
We Millennials are the largest generation in the US and have been turning 30 at a rate of about 4.8 million per year. The oldest millennials are 41 and are just entering their peak earning years. For some of us, that means it’s time to enter the housing market and move out of our parents’ basements.
Reason #2 Cost to Build
The Bay Area is home to some of the most expensive real estate. We have strict regulations in place for building new homes, and with the cost of living being so high, that means the cost of labor is rising, too. Add to that the high workload of many contractors with so many folks improving their homes, which causes labor shortages on top of supply chain issues and higher cost of materials as a result of the pandemic.
Reason #3 Low Inventory
San Francisco is no stranger to low housing inventory. With the steep rise in property values, would-be sellers are holding off from selling since they can’t locate a replacement property. Additionally, more investors are buying up homes for investment purposes, worsening the supply shortage. San Francisco is also geographically limited, so building more homes isn’t an easy solution. Plus, developers are more likely to profit from building luxury properties, excluding a lot of the population from the market.
Reason #4 Low Interest Rates
Inflation has run rampant this year. We saw a 40 year high inflation rate of 6.8%! That makes the relatively low average mortgage rate of around 3% even more attractive to buyers. Many folks are aware that by locking in a low interest rate for real estate they are hedging against inflation by being able to borrow “cheap money” that will later be repaid with “cheaper dollars.”
In conclusion, I believe interest rates will slightly rise so inflation doesn’t get out of control, and this will cause real estate to appreciate, but at a lower rate. My prediction is that we will return to a more “normal” market. For SF, that means we could see property values increase by 5%-7% for single family homes and 3%-5% for condos. Only time will tell…
If you’re looking for an agent to help you navigate the San Francisco real estate market, I’d love to help you and yours get your place in the city.
If you’d like to hire me as your Realtor please contact me @ [email protected]
#housingmarket #2022predictions #sanfrancisco
Note from Zennie62Media and OaklandNewsNow.com : this video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. What we call “The Third Wave of Media”. The uploaded video is from a YouTube channel. When the video is “liked” by Zennie62 YouTube, then it is automatically uploaded to and formatted automatically at the Oakland News Now site and Zennie62-created and owned social media pages. The overall objective here, on top of our is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours – is the use of the existing YouTube social graph on any subject in the World. Now, news is reported with a smartphone and also by promoting current content on YouTube: no heavy and expensive cameras or even a laptop are necessary, or having a camera crew to shoot what is already on YouTube. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners.