Early 2022: Median Home Prices Still Rising, But Effects of Major Macroeconomic Changes Pending Bay Area home markets through April 2022 generally continued to see home-price gains to new peaks, and statistics based on closed sales during this period still reflect intense demand competing for an inadequate supply of homes for sale. (Note that supply and demand dynamics, and price appreciation rates, between house and condo markets typically diverged substantially over the past 2 year.) However, interest rates soared 64% in the first 4 months of the year, and stock markets continue to experience high volatility with significant declines occurring during the period. The effects of these changes have just begun filtering through to the market – as seen in declines in open house attendance and the number of offers received by new listings, changes in plans by some buyers and sellers, and drops in the number of listings going into contract – but have not yet shown up in closed-sales statistics. (Closed sales are lagging market indicators, reflecting new listings coming on market, interest rates, and offers being accepted 4 to 8+ weeks earlier.) What exact effects these recent economic changes may have on markets and home prices are unknown. It is extremely difficult, if not impossible, to predict the effects of the almost infinite variety of economic, political, demographic and environmental factors – arising, changing and interacting locally, nationally and internationally – that can impact financial and real estate markets. A more detailed explanation of context, methodology and caveats can be found at the end of this report.
Source: CompassIt is impossible to know how median and average value statistics apply to any particular home without a specific comparative market analysis. These analyses were made in good faith with data from sources deemed reliable, but may contain errors and are subject to revision. It is not our intent to convince you of a particular position, but to attempt to provide straightforward data and analysis, so you can make your own informed decisions. Median and average statistics are enormous generalities: There are hundreds of different markets in San Francisco and the Bay Area, each with its own unique dynamics. Median prices and average dollar per square foot values can be and often are affected by other factors besides changes in fair market value. Longer term trends are much more meaningful than short-term. Compass is a real estate broker licensed by the State of California, DRE 01527235. Equal Housing Opportunity. This report has been prepared solely for information purposes. The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information. Compass disclaims any and all liability relating to this report, including without limitation any express or implied representations or warranties for statements contained in, and omissions from, the report. Nothing contained herein is intended to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass does not provide such advice. All opinions are subject to change without notice. Compass makes no representation regarding the accuracy of any statements regarding any references to the laws, statutes or regulations of any state are those of the author(s). Past performance is no guarantee of future results. |
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