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Silicon Valley Real Estate Questions - Top Question for 2022

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Silicon Valley Real Estate Questions - Top Question for 2022

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Presentation on the top questions people are asking about the Silicon Valley real estate & what to expect in 2022 market! Sign up for my newsletter or subscribe to my YouTube Channel for more real estate info, home tours and tips in buying, selling or investing in the SF Bay Area.

I'm always happy to help!

Here's my blog post at this link: https://bit.ly/TopSellerBuyerQuestions


LYNNE WATANABE MACFARLANE, MCDM, SRES, SRS | Realtor
Master of Communication Digital Media/Marketing (MCDM)
Senior Real Estate Specialist (SRES)
Seller Representative Specialist (SRS)
Professional Fiduciary Association of California, Silicon Valley affiliate (PFAC)

Intero Real Estate Services | Berkshire Hathaway affiliate
(408) 800-1141
LMACFARLANE@INTERO.COM
www.lynnemacfarlane.com

Presentation on the top questions people are asking about the Silicon Valley real estate & what to expect in 2022 market! Sign up for my newsletter or subscribe to my YouTube Channel for more real estate info, home tours and tips in buying, selling or investing in the SF Bay Area.

I'm always happy to help!

Here's my blog post at this link: https://bit.ly/TopSellerBuyerQuestions


LYNNE WATANABE MACFARLANE, MCDM, SRES, SRS | Realtor
Master of Communication Digital Media/Marketing (MCDM)
Senior Real Estate Specialist (SRES)
Seller Representative Specialist (SRS)
Professional Fiduciary Association of California, Silicon Valley affiliate (PFAC)

Intero Real Estate Services | Berkshire Hathaway affiliate
(408) 800-1141
LMACFARLANE@INTERO.COM
www.lynnemacfarlane.com

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Silicon Valley Real Estate Questions - Top Question for 2022

  1. 1. 2021 Top Questions Everyone is Asking about the Real Estate Market I’ll always have the latest insights for you! Sign up for my newsletter or subscribe to my YouTube Channel!
  2. 2. What is driving the crazy home prices in Silicon Valley?
  3. 3. Months Inventory of Homes for Sale Sellers’ Market (< 6 Months) Neutral Market (6-7 Months) Buyers’ Market (> 7 Months) 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 Today 2007 2006 2008 2010 1999
  4. 4. Heat maps showing inventory levels • Silicon Valley San Jose, Santa Clara county the maps in BLUE show significant decrease in inventory in almost ALL the zip codes from Nov 2020 to Nov 2021. • 94043 & 94041 Mountain View • 94089 Sunnyvale • 95054 Santa Clara • 95050 Santa Clara • 95051 Santa Clara • 95030 Los Gatos / Monte Sereno
  5. 5. Heat maps showing low inventory levels • 95015 Daly City • 94005 Brisbane • 94044 Pacifica • 94030 Millbrae • 94010 Burlingame, Hillsborough, San Mateo • 94002 Belmont • 94065 Redwood City • 94061 Redwood City
  6. 6. But will home prices depreciate in 2022?
  7. 7. Average of All Forecasts: 5.1% Home Price Forecasts 2022 7.4% 7% 5.4% 5.1% 3% 2.8% Fannie Mae Freddie Mac MBA HPES Zelman NAR Over 100 industry experts predict more modest appreciation in next 12 months (5%) vs. to 11.7% avg in 2021
  8. 8. “The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.” George Ratiu Manager of Economic Research for Realtor.com
  9. 9. Majority of Sellers Entering the Market in the Next Year Plan to List In Next 6 Months realtor.com 65% Have just listed (19%) or plan to list this winter 93% Have already taken steps toward listing their home, including working with an agent (28%) 36% Have researched the value of their home and others in their neighborhood, as well as started making repairs or decluttering
  10. 10. What will happen with the 2022 market?
  11. 11. $325 $375 $425 $475 $525 $575 $625 $675 $725 $775 $825 $875 $925 $975 $1,025 $1,075 $1,125 $1,175 $1,225 $1,275 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 RENT since 1988 Median Asking
  12. 12. Some Historical Perspective on Today’s Mortgage Rates 30-year fixed rate 2.5 3 3.5 4 4.5 5 2021 2016 2018 2017 2019 2020
  13. 13. Mortgage Rate Projections Quarter Freddie Mac Fannie Mae MBA NAR Average of All Four 2022 1Q 3.4 3.2 3.3 3.3 3.30% 2022 2Q 3.5 3.2 3.5 3.5 3.42% 2022 3Q 3.6 3.3 3.7 3.6 3.55% 2022 4Q 3.7 3.4 4.0 3.7 3.70%
  14. 14. 6.7M 6.6M 6.8M 6.8M 6.8M 6.8M 6.9M 7.5M 5 5.5 6 6.5 7 7.5 2021 2022 Fannie Mae Freddie Mac Home Sales Forecast To Increase This Year and Perform Well Again in 2022 6.5 Million Homes Sold in 2020
  15. 15. Call or text (408) 800-1141 or (831) 346-2743

Editor's Notes

  • It’s impt to remember that the 2021 market was anything but normal, and that escalating home values were a direct result of record – LOW INVENTORY.

    HOWEVER, experts project that the inventory situation should improve in the coming year, slowing the price appreciation.
  • nar.realtor
    https://www.nar.realtor/topics/existing-home-sales
    https://www.nar.realtor/newsroom/existing-home-sales-jump-6-5-in-february
  • OVER 100 industry experts agree there will be no home depreciation in 2022; instead they are projecting a more MODEST APPRECIATION of 5% in the next 12 months compared to the 11.7% rise seen on average in 2021.

    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
    https://cdn.nar.realtor/sites/default/files/documents/forecast-Q4-2021-us-economic-outlook-10-28-2021.pdf
    https://www.fanniemae.com/research-and-insights/forecast
    http://www.freddiemac.com/research/forecast/index.page
    https://pulsenomics.com/surveys/#home-price-expectations
  • https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter
  • https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter
  • http://www.census.gov/housing/hvs/files/currenthvspress.pdf

    Rents will continue to rise… great for those who own investment properties and rentals, but bad for those who are not homeowners… and the cost for waiting to buy in the following years will not get easier.
  • With rates continue to rise and the cost of waiting to buy this time next year will be more!
  • http://www.freddiemac.com/pmms/pmms_archives.html.
    In 2020 money was basically free. Now, in 2021, inflation is starting to set in, and the party is over. Interest rates are on the rise
  • http://www.freddiemac.com/research/forecast/20211015_quarterly_economic_forecast.page?
    https://www.fanniemae.com/media/41656/display
    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
    https://cdn.nar.realtor/sites/default/files/documents/forecast-Q4-2021-us-economic-outlook-10-28-2021.pdf

    How much are interest rates going to go up? I don’t have a crystal ball, but this is what the industry analysts are predicting.
    And what happens when Interest rates go up? There wont be as many buyers.
  • https://www.fanniemae.com/media/41126/display
    http://www.freddiemac.com/research/forecast/index.page
    https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
    https://cdn.nar.realtor/sites/default/files/documents/forecast-Q4-2021-us-economic-outlook-10-28-2021.pdf
  • Historically there has never been a better time to sell your house. If you want to know more, give me a call

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