Here’s a recap of our 2021 market and a look ahead at 2022.
Today we’re going to take a look back on the 2021 real estate market in San Mateo and Santa Clara counties, as well as share a few predictions for 2022.
We’re continuing to see median house appreciation; year over year, prices rose a median of 18%. In San Mateo County, the median house price is now $2 million, and in Santa Clara, it’s $1.6 million.
Additionally, we saw an increase in the number of homes that sold in 2021 over the previous year. In San Mateo County, 7,435 homes sold, which is a 16% increase year over year. 18,000 homes sold in Santa Clara County, which is a 26% increase. For both counties, that’s the highest number of homes sold in a year out of the last five years.
“Our mortgage partners tell us to expect higher interest rates this year.”
So what do we predict for 2022? We think that home prices will continue to appreciate, but not at the same pace as last year. Our mortgage partners tell us to expect higher interest rates this year, as well. We also predict that the net migration out of the state will continue as it has for the last few years. Accessory dwelling units will continue their popularity; there are more ADU construction companies than ever before, and more investors and homeowners see the value in having additional rental income. ADUs are also becoming a great option for multi-generational households.
The bottom line is that life events drive real estate decisions. Marriage, divorce, children, empty nests, retirement, and job relocation—all of these changes make people re-evaluate their living arrangements.
So how about you? What is changing in your life? What are your real estate goals for 2022? Call or email us today, and we can talk about your options. Hope to hear from you soon!