For many months now, we've been reporting on the tight supply conditions within the San…
For many months now, an inventory shortage within the Bay Area real estate market has forced buyers to compete fiercely with one another. This trend has also boosted home prices to an all-time record high.
Many are now wondering if the Bay Area housing inventory situation will improve in 2022, and if more homes will come onto the market.
A recent report from Realtor.com showed that the San Francisco-Oakland-Hayward metro area is still experiencing low supply levels. In fact, housing inventory across the region appears to have declined over the past year.
This is arguably the number-one factor that will influence the Bay Areal real estate market in 2022. Here’s what home buyers should know about it.
Tight Supply Will Affect Bay Area Housing Market in 2022
Ask anyone who has purchased a home in the Bay Area recently what their biggest challenge was, and they’ll probably mention inventory. We’ve heard it all before — there are plenty of buyers out there, but not enough homes to go around.
A recent report published by Realtor.com suggests that low inventory could continue to be an issue in 2022, as well. In fact, this will be one of the primary drivers affecting the Bay Area housing market in 2022.
On November 10, Realtor.com published a housing market update with data for the nation as a whole along with major metro areas. Among other things, their report showed a year-over-year decline in total housing market inventory within the Bay Area region.
According to the report, the total number of property listings within the San Francisco-Oakland-Hayward metropolitan area declined by 25.2% over the past year or so. Newly added listings also declined, dropping by 9.4% year over year.
In other words, an already tight real estate market has become even more constrained during 2021. These data points suggest that the low-inventory situation we’re all so familiar with could be a factor in 2022 as well. If so, the Bay Area housing market will likely remain competitive for the foreseeable future.
To be clear, the Realtor.com report is based on the number of listings on their website, specifically. But they are one of the largest listings websites online today, so their report likely reflects the broader real estate market.
Home-Buying Lessons Learned
The past year has been a tough one for some Bay Area home buyers. Low housing market supply and fierce competition frustrated a lot of buyers in 2021. Next year could bring more of the same (or a lesser version of it).
In 2022, the Bay Area real estate market will probably continue to challenge buyers. But that doesn’t mean you can’t succeed. Over the past year, thousands of buyers purchased homes in the area. They are living proof that you can succeed in this market, despite the tight inventory conditions.
Here are some tips to help buyers navigate the Bay Area housing market in 2022:
- Be aware of inventory constraints. The overall theme of this article is that an ongoing supply shortage will influence the Bay Area real estate scene in 2022. As a home buyer, you should be aware of these conditions and plan accordingly. It might take you longer to find a suitable property than you think, so start early.
- Have your financing ready. If you’re using a mortgage loan to buy a home, you’ll benefit from getting pre-approved before entering the market. This could improve your chances of having your offer accepted. It also allows you to narrow your search to a specific price range (i.e., time-saver). Please contact us if you’d like to get pre-approved for a home loan.
- Work with a real estate agent. As a home buyer, you have the opportunity to get professional help from a real estate agent at no cost to you. Sellers typically pay the agent commissions, out of the proceeds earned from the sale. An agent can help you succeed in a highly competitive real estate market, especially when it comes to the offer amount. Speaking of which…
- Make a strong first offer. In 2022, the Bay Area housing market will remain competitive due to tight inventory conditions. So important to make a strong offer when attempting to buy a house. You can use property listing websites like Realtor.com and Zillow to see what homes are selling for in your target area. This kind of research can help you make a smart offer, when the time comes. A real estate agent can help you with this as well.
Need Mortgage Financing?
For nearly 20 years, Bridgepoint Funding has served the mortgage needs of Bay Area home buyers and homeowners. We can help you tackle this competitive housing market by pre-approving you for a specific loan amount.
As a mortgage broker, we’re able to offer a broad range of financing options. These include FHA, VA and conventional mortgage products. We can also provide jumbo loans up to several million dollars, for those with sufficient income.