The Tri-Valley real estate market began 2022 in uncharted waters with historically low levels of available homes on the market.
“They were the lowest levels that I have witnessed in my 27-year career. “–Gina Piper, Co-Head Honcho, Elation Real Estate
Pleasanton had the lowest number of available homes as of January 1 with only 4 homes on the market. We have seen a downward trend in overall inventory levels over the last several years and expect this trend to continue into and through 2022. Buyer demand, however, has remained very strong and is expected to continue through 2022, which points to a strong seller’s market and further increases in property values.
Here’s a comparison of today’s inventory levels as compared to this time last year:
Pleasanton: 21 (-19) – Dublin: 15 (-7) – San Ramon: 26 (-7)
Livermore: 39 (-3) – Danville: 27 (-30) – Alamo: 7 (-12)
The Rest of the Bay
The Tri-Valley is not the only market struggling with low inventories. It is prevalent throughout the entire Bay Area and in many of the major markets throughout the country. Many people, for example, are choosing to leave California and move to states such as Idaho, Montana, Texas, Florida, etc. in search of a lesser tax burden and a better lifestyle. Many of the areas within these states are experiencing the same shortage of housing and rapidly rising prices that we are experiencing here. The second home markets are also experiencing these same conditions. Resort areas such as Lake Tahoe in California and Nevada, Whitefish Lake in Montana and Coeur D’Alene in Idaho are all in the same boat as far as available homes and skyrocketing prices are concerned. The Covid pandemic has fueled a lot of this activity, as people are able to work remotely, so it will be very interesting to see what happens when people can no longer work remotely and have to go back to working in person.
Interest rates are expected to increase this year due to the record high rate of inflation and could have a cooling effect on the market if they reach a high enough level to have a major impact on a buyer’s ability to qualify or afford a home.
2022 promises to be an interesting year in real estate and everywhere else.
If you have a real estate related question or need, please feel free to contact us and we will be happy to answer your question or assist you.
Your Elation Real Estate Team.