Housing Market Predictions 2022
The real estate housing shift has begun. It’s June 2022, and we are seeing on the ground what’s happening before the numbers come out at the end of the quarter or the end of the year. So we as agents are actually seeing what’s happening on the market.
As far as the prices and the condition of the home, that’s a big change in attitude and the atmosphere and the activity in real estate. So that tells us on the ground what’s happening. I’ll give you another example. I have an escrow out right now. There’s a house that was for sale in Arm Hills, of course. I’m from Enemy Hills. I called the agent and Lo and beheld, he answered and I asked him, do you have any offers? The listing price is $1.3M, about 2200 sq. ft., fully remodeled. Great location, great yard, and a lot of amenities like spas and fireplace stones, and custom stones in the landscaping.
Well, in Anaheim Hills, as you may know, the average day on market is seven days. So when I call an agent and after 12-15 days there’s no offer that makes my head scratch. Long story short, we write an offer, not at $1.3 million. We write an offer for under $1.2 million. The buyer goes hey, it’s been sitting on the market. I’ve been seeing this house for ten days. Usually, when we call them they have four or five or six offers. This house does not have an offer so we are still negotiating. My buyer will take about $1.2 million, which is $100,000 less than the listing price. So that tells you that the activity is shifting the marketing and the housing pricing and activity is changing but a word of caution, I’m not trying to be negative on the housing. Housing is still very active home prices according to my stats that I’ve seen and sold and reading other reports the home prices in 2022 will still go up.
It says panoramic City View small imperfect home on the hills of Anaheim Hills, perfect to build your dream home or your custom home or build it and flip it. This house is listed for $1.195M and it’s three bedrooms, as you will see from as you can see from outside, it needs some work. This second bedroom obviously needs a lot of work. And you have the view outside. Here’s the one bathroom in the house. It’s located in the hallway between the two bedrooms and next to the other room leading to the washer and dryer. As you can see, somebody can really enjoy working on this house. This is the hallway connecting the bedrooms to the kitchen and the living room. And the hallway leads you to the washer-dryer area. We are now in what we call the third bedroom. It’s right next to the washer and dryer. The kitchen is right there. And to my left is a door going to the backyard one of the exits to the backyard. And as you can tell from the pictures and what’s there is in the room. The House does need work. It needs paint, it needs carpet, and it needs updating the new kitchen. But the great thing is it’s located on top of the hill right near the El Rancho junior high school. Going to my right is the word Canyon which offers panoramic views and a very private area. In fact, some of the homes in this neighborhood are well over $3 million. There are horse-zoned properties in this neighborhood. So this could be a great private secluded home if you are willing to upgrade it as we go through the house. As far as the price of the house goes even though it’s what we call a fixer upper-priced at over a million dollars. The value like I mentioned earlier, the seller had has planned for 4000 square feet home and that could be valued over $2 million once it’s ready to go. So a lot of potential in this house. If you’re the kind of buyer that likes to buy this kind of house and want some more information on other homes in this kind of situation.
A number of home sales are going down. So the market is still very active. But what’s not happening Is that homes are not selling right away within seven days anymore. In Anaheim Hills, it’s 15 days but in Orange County and other places, it may go to three weeks. Four weeks. So that is slowing down. But the home prices are going up. There is still a shortage as far as inventory goes, and the demand is still high despite the over 5% interest rate. So there’s a shift in home activity but there is no bubble. I get calls all the time from friends and people that I know and past clients, hey, is there a bubble? Should I wait and tell them there is no bubble? And the reason I say that personally there is no bubble, at least in the immediate future is that there’s a lot of activity. There’s a lot of equity. There’s a lot of demand. So there’s no bubble. There may be a housing recession coming. Housing slows down. The prices still seem to be strong.