What are your predictions for the Bay Area housing market in 2022?

A:

We all thought we had this figured out prior to the new variant. This was the industry banter as we concluded 2021:

Interest rates will trend upward throughout the year.

Low inventory in all market price ranges will continue to be an issue. The popularity of the high-end market increases to be active at a healthy moderate level. Annual 2022 appreciation of about 5.8% from the 2021 high of 28 to 31%.

The new “unknown” new ... Interest rates maintain low levels throughout the first six months of 2022. Low rates help banks capture consumer relationships. Banks compete for client loyalty and rates are the hook.

The high end of the market rapidly jumps in price and sales velocity. “We will see sales prices beyond our comprehension.” Annual appreciation will continue to move at rates of 18 to 24%.

Room of the year 2021 was the home office. Room of the year 2022 will be the kitchen.

As the new COVID-19 variant pulls back on our social liberties, we will experience more time and comfort at home; that equates to a very active winter and spring.

A:

The Bay Area real estate forecast for 2022 looks healthy and strong. Here are some reasons why:

Low Interest Rates:

If those interest rates stay as low as they currently are, an average 3% on a 30-year fixed loan, purchasing a home will remain very attractive in all price ranges.

Stay-at-Home Employment:

Buying a home in the East Bay, where it is less expensive than San Mateo County or San Francisco, makes a lot of sense for a lot of folks. No commute, lower monthly payment, more income to spare.

Speaking of San Mateo County and San Francisco, where the home values are the highest, lots of folks will be taking advantage of those values to sell and head to the hills, where they can buy a place with little or no down payment with extra to live on. What a dream.

Finally, what keeps our Bay Area real estate market so strong is the great economy and job stability that our younger generation is thriving in! Wishing continued success to all.

Big Equity:

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Send an email to Jordan Guinn at Realestate@sfchronicle.com