With 2021 drawing to a close, it’s time to start looking ahead to see what conditions might be like in the San Diego area for next year. Pretty much everyone has an opinion about what will happen in the housing sector, but those who have been in the industry for quite a while, have a strong sense of where the industry is headed. Here are some San Diego housing predictions for what will happen to the housing market of San Diego in 2022.
Mortgage rates will be low
Current San Diego mortgage rates are at 3.19% for a 30-year loan with fixed rates, and 2.50% for a 15-year loan with fixed rates. Experts predict that the 30-year rate will rise slightly to around 4%, and the 15-year mortgage rate will slip slightly to 2.3%. More and more people are seriously considering both the 15-year and the 30-year fixed rates, as opposed to adjustable rates which can fluctuate wildly over the duration of a mortgage. No one in the industry expects any kind of significant rise in mortgage rates for 2022.
Rentals will increase in 2022
This may seem like a no-brainer, since rental fees pretty much increase every year, but if you were expecting a moratorium on those increases, you’re going to be disappointed. The best you can do is to try and time your lease arrangement for optimal periods of the year in order to secure the best deal. You should also keep aware of external events which may influence the housing market, and cause sudden spikes in rental fees. The best way to do this is to stay in regular contact with a real estate agent who can apprise you of any developments. San Diego property management rentals will still be on the rise.
Eviction moratoriums will end
The COVID-19 crisis caused a long-running moratorium on evictions for people who could not afford their rental fees. The protection afforded by the Tenant Protection Act of 2019 does stay in effect until January 1, 2030, and it prevents landlords from increasing rents by more than 5% plus the cost-of-living percentage change. This still allows landlords to increase your rent fees twice each year, provided that the total increase is no more than 9.1%, and that can be a significant amount if you already pay a high rent fee. With moratoriums ending, and only limited protection from legislation, renters had better be prepared for significant increases.
Housing prices will rise
In the wake of the pandemic, it is anticipated that housing prices may rise as much as 11% through the middle of 2022. Given the fact that continuing low mortgage interest rates will prop up the real estate market, it is expected that a number of new buyers will be attracted. The fear of missing out will probably motivate a number of buyers to get into the market and find the home of their dreams. All indications are that the demand for housing will be very strong in 2022, and that there will be far more buyers than sellers. San Diego Housing Predictions
Housing sales will level off
There were approximately 42,000 home sales throughout all of 2020, and to this point in 2021 sales have increased around 38%. This surprising figure is expected to drop dramatically as a San Diego Housing Predictions , because both buyers and sellers will be responding to market conditions. Buyers are having increasing difficulty saving the money for a purchase because of pandemic working conditions. As per San Diego housing predictions sellers are not that interested in dealing there properties, because they’re waiting for higher prices to kick in. Many houses will stay off the market because loan interest rates have been reduced, loan terms have been extended, and monthly mortgage payments have even been lowered. All these factors will combine to keep housing sales fairly modest at best during 2022.
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