2022 the Greater Palm Springs Area Housing Market Forecast

As you’re planning for 2022, get valuable data and expert predictions from the highly sought-after annual Palm Springs Area Housing Market Forecast! From Real Estate experts to Bubble Pundits, what are they saying about 2022 the Greater Palm Springs Area Housing Market Forecast?
Note: This information was taken on 10/28/2021. Some organizations will update their information frequently.

What will the housing market look like in 2022?

CALIFORNIA ASSOCIATION OF REALTORS®(California Housing Market)
Supply constraints and higher home prices will bring California home sales down slightly in 2022, but transactions will still post their second highest level in the past five years. The baseline scenario of C.A.R.’s “2022 California Housing Market Forecast” sees a decline in existing single-family home sales of 5.2 percent next year to reach 416,800 units, down from the projected 2021 sales figure of 439,800. The 2021 figure is 6.8 percent higher compared with the pace of 411,900 homes sold in 2020.

The California median home price is forecast to rise 5.2 percent to $834,400 in 2022, following a projected 20.3 percent increase to $793,100 in 2021 from $659,400 in 2020. An imbalance in demand and supply will continue to put upward pressure on prices, but higher interest rates and partial normalization of the mix of sales will likely curb median price growth. Additionally, a shift in housing demand to more affordable areas, as the trend of remote working continues, will also keep prices in check and prevent the statewide median price from rising too fast in 2022.

Freddie Mac (National)
Despite low mortgage rates, many buyers are discouraged from homebuying due to an increase in home prices. The pace of home sales has cooled since the first quarter of 2021 when it was at 7.2 million. We forecast home sales to hit 6.8 million for the full year 2021 and 2022. Additionally, we forecast house price growth of 16.9% in 2021. However, we expect house price growth to slow to 7.0% in 2022.

CoreLogic (National)

The CoreLogic HPI Forecast indicates that home prices will increase on a month-over-month basis by 0.3% from August 2021 to September 2021, and on a year-over-year basis by 2.2% from August 2021 to August 2022.

FirstTuesday Journal (Riverside County)

Home sales volume in Riverside will begin to stabilize from the 2020 recession around 2023-2024, at which point first-time Gen Y and Gen Z homebuyers and Baby Boomer retirees will converge to drive up sales volume and prices. In the meantime, expect home prices to decline in 2022 following the increase in distressed sales.

Zillow

Avenue Properties : Mark Kunce

In the eye of the pandemic, resort towns like Palm Springs and La Quinta are evolving into the permanent go-to places for homebuyers—especially those scurrying from big cities like Los Angeles and Orange County and with the leeway to work from home. Now that tens of millions of people have experienced working from home for months, the trend is likely to continue. I believe there will be a permanent desire for employees to work from home 2-3 days a week and companies will allow it to retain employees. People want to buy homes with pool, out-door living space, more land for their children, and homes with home offices. People want to buy homes that are in less densely populated areas of their city or in a different state. Therefore the Greater Palm Springs Area home prices will continue to increase, just at a slower pace than we’ve seen in the past few years.

  • Tips For Home Buyers: Even as home prices continue to rise, affordability is working in favor of today’s homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family’s needs have changed. If you now need space for a home office, gym, pool, and more, it may be time to reconsider your current house. Buyers, do not wait on the sidelines. Instead, cash in on these incredible rates now.
  • Tips For Home Sellers: Will the seller’s market continue? Probably. The market won’t tank anytime soon, yet we may be nearing price peaks. Anyone thinking of putting their home on the market should not wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today. In 2021, when the pandemic is hopefully behind us, there will be many more properties coming to the market. Don’t wait for that increase in competition in your neighborhood.
  • Tips For Investors: The Greater Palm Springs area is a great place to buy a rental property. Homes cost less here, yet fetch nearly as much in rental rates as the rest of the state. Therefore, if you are looking to invest, you may want to consider a buy and hold strategy over flipping or wholesaling.

Note: Housing Prediction is a interesting and popular topic in real estate. But don’t let it dictate your home buying/selling decision. Always concentrate on your goal, your big why. In the end, there are only two ways to make money in real estate. You either hit the right timing of the market or you have enough time in the market. That is, you either happen upon the right moment to buy your home or you hold it long enough for time to make your purchase right. Nobody is able to time the market. But you most certainly can count on the later.

What do you think? Will the median home value in the Coachella Valley go up in 2020?

 

Disclaimer: This story contains predictions and forecasts relating to home prices and other aspects of the housing market. Those forward-looking views are the equivalent of an educated guess and should be treated as such.