A Reassuring Look at Today’s Market

Jeff Lang June 29, 2022

Let’s take a step back and assess the reality of today’s housing market.
Does it seem like you’ve heard nothing but negative news about the real estate industry? If so, I’m here to put things into perspective. Take a deep breath—things aren’t as bad as they’re portrayed in the media. One major concern is that home sales will fall off a cliff soon. In reality, the forecast is for about a 15% drop in sales from last year. That sounds like a lot, but keep in mind that last year was an anomaly; home sales in 2021 were the second highest they’ve been in the past 40 years. We’re simply returning to a more normalized market.
“The market is shifting to a more balanced state, but it’s not crashing.”
The second trigger for consumers is the fact that interest rates have risen. Nationally, the average rate is currently around 6%, though rates will rise even more as the year continues. That’s significantly higher than they were a year or even six months ago. Just like with home sales, last year was also an atypical year for interest rates. In the grand scheme of things, 6% is still historically low.
Even more important is that in San Mateo County, most home purchases will be made using jumbo loans. I recently saw jumbo loan rates at under 5%, which is almost a percent lower than the national market. The bottom line is that the market is shifting to a more balanced state, but it’s not crashing. Homebuyers and sellers still have lots of opportunities to take advantage of the market.
If you have any questions about what’s going on or need professional assistance with your transaction, give me a call or send me an email. I’m always here to help you.

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