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

1. 2021 Top
Questions
Everyone is
Asking about the
Real Estate Market
I’ll always have the latest
insights for you!
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subscribe to my YouTube
Channel!

2. What is driving the
crazy home prices
in Silicon Valley?

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. 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. 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. But will home prices
depreciate in 2022?

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. “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. 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

12. What will happen with
the 2022 market?

13. $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

15. 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

16. 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%

17. 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

18. Call or text (408) 800-1141 or (831) 346-2743